Mumbai: The Reserve Bank of India (RBI) on Wednesday relaxed asset classification norms for loans for projects that have been delayed by factors beyond the promoters’ control.
Under the current norms, infrastructure projects have to commence operations within two years of completion. For non-infrastructure project loans, the deadline for starting operations is six months. If projects are not started within that period, banks must treat them as bad debts.
In its latest notification, however, RBI said banks could continue treating an infrastructure loan as “standard” for another two years if the commencement of the project has been delayed due to “arbitration proceedings or a court case”. However, to avail of the extension, the account must be serviced regularly, or the interest due be paid regularly.
DIPP in discussions on FDI policy proposals
New Delhi: The department of industrial policy and promotion (DIPP) is at present in discussions with other ministries to review the foreign direct investment (FDI) policy in sectors such as defence and agriculture.
DIPP secretary R.P. Singh said the department will come out with discussion papers involving FDI policy proposals in 7-8 sectors on its website.
“I am personally in favour of allowing higher FDI limits in defence sector. But we are mindful of the sensitivity of the defence ministry,” commerce and industry minister Anand Sharma said at an event organised by the Confederation of Indian Industry.
--Asit Ranjan Mishra