| Date: |
07-06-2002
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| Notification No: |
RBI Notification No 17/2002
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| Issuing Authority: |
RBI
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| Type: |
Notification
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| File No: |
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| Subject: |
Asset Classification of Projects Under Implementation – Time Overrun – Definition of Financial Closure
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Asset Classification of Projects Under Implementation � Time Overrun
� Definition of Financial Closure
DBS.
FID. No. C.17 - 01.02.00 dated 7th June 2002
Please
refer to our Circular DBS. FID. No. C.11/ 01.02.00/ 2001-02 dated February 1,
2002 on the captioned subject in terms of which the asset classification of
certain categories of projects under implementation is related to the timing of
the "financial closure" for the project.
2.
In order to ensure uniform interpretation of the term "financial
closure", it has been decided to define "financial closure" as
follows:
"For greenfield projects, financial
closure is defined as a legally binding commitment of equity holders and debt
financiers to provide or mobilise funding for the project. Such funding must
account for a significant part of the project cost which should not be less than
90 percent of the total project cost securing the construction of the facility
�.
3.
The date of financial closure in respect of projects under implementation
should be determined accordingly for the purpose of asset classification of such
projects, under the extant norms.
4.
Please acknowledge receipt.
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