DBS.FID No.C-8 / 01.02.00 / 2002- 03 September 14, 2002 The CEOs of the All-India Term-Lending and Refinancing Institutions Dear Sir, Asset Classification of the Projects Under Implementation - Time Overrun -
Reversal of Provisions Please refer to para 3.1 of our Circular DBS.FID. No. C-11/201.02.00/2001-02 dated February 1, 2002 on the captioned subject in term of which the asset classification of the projects falling under Category II, as specified therein, is required to be decided with reference to the 'deemed date of completion' of such projects as determined by the Independent Group. These norms have become effective from the year ended 31 March 2002. The report of the Independent Group was also forwarded to the FIs separately. 2. In this context we advise that, as a prudential measure, the provisions held by the FIs in respect of such accounts should not be reversed even in cases where, as per the deemed date of completion of the Category II projects, certain accounts might become eligible for upgradation to the 'standard' category. 3. Please acknowledge receipt. Yours faithfully, (Rajesh Verma)
General Manager-in-Charge | |