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    Question

    Under what conditions can an infrastructure project loan be classified as a Non-Performing Asset (NPA) before the commencement of commercial operations (unless it is restructured)?

    A If the project fails to achieve financial closure. Correct Answer Incorrect Answer
    B If it is restructured within two years from the original DCCO. Correct Answer Incorrect Answer
    C If it fails to commence commercial operations within three years from the original DCCO. Correct Answer Incorrect Answer
    D If it fails to commence commercial operations within one years from the original DCCO. Correct Answer Incorrect Answer
    E If it fails to commence commercial operations within two years from the original DCCO. Correct Answer Incorrect Answer

    Solution

    A loan for an infrastructure project shall be classified as NPA if it fails to commence commercial operations within two years from the original DCCO, even if it is regular as per the record of recovery, unless it is restructured and becomes eligible for classification as a 'standard asset'.

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