Industrial Developemnt Bank of India, the principal lender to the Dabhol Power Company, has finally declared the 2,184 mw power project as a non-performing asset.

"We have classified both Phase I and Phase II as an NPA as per the Reserve Bank of India guidelines", a top official of IDBI said in Mumbai on Thursday after the board meeting.

Asked as to why IDBI had declared the project as an NPA now, the official said, "The criteria is set out objectively by RBI and we have followed it as per the norms."

Despite making provisions for the DPC, "we have still made profit", he said but declined to specify the amount provided for DPC.

The provisioning comes close on the heels of the talks in Singapore last week between the Indian and foreign lenders, which the official termed, as "positive".

The financial institution for the year ending March 31, 2004 has made a provision of Rs 1,540 crore (Rs 15.4 billion) for bad and doubtful debts and investments as against Rs 1,110 crore (Rs 11.10 billion) in 2002-03.