Which of the following is not true with regard to any

Solution

Any change in the repayment schedule of a project loan caused due to an increase in the project outlay on account of increase in scope and size of the project, shall continue to be classified as ‘standard’ if:

• The increase in scope and size of the project takes place before commencement of commercial operations of the existing project.
• The rise in project cost excluding any cost-overrun in respect of the original project is 25% or more of the original outlay
• lenders re-assess the viability of the project before approving the enhancement of scope and fixing a fresh DCCO.
• On re-rating , (if already rated) the new rating is not below the previous rating by more than one notch .
• If the project debt was unrated at the time of increase in scope or size, then it should be rated investment grade upon such increase in scope or size.