get good ratings,” Verma said.
While the new rating system will cover greenfield projects initially, NHB and IBA may consider ongoing projects.
The rating will not be mandatory, but will be incentive-based and demand-driven. The rating is on a scale of 1-7. It will include a technical appraisal related to land acquisition, title, possession, approvals, planning, pricing, project viability on a standalone basis and the financial position of promoters. The escrow mechanism, where cash flows of the project will be kept aside, will also be considered during the rating. Also assessed will be the financial strength of the promoter and the project, technical and technological due diligence and market due diligence. All the risks associated with lending get mitigated. The rating will uniformly be advocated to the banks and lenders, including HFCs.