New Delhi, May 25 (IANS) The union cabinet on Wednesday waived off loans of more than Rs.9,079 crore accumulated by Hindustan Fertiliser Corporation Ltd. (HFCL) as part of a financial restructuring package for the state-run unit.
“The cabinet approved the waiver of government loan of Rs.1,916.14 crore (as on March 31, 2015) and the outstanding interest on the loan as on date (interest of Rs.7,163.35 crore as on March 31, 2015),” a chemicals and fertilisers ministry statement said here.
“The cabinet also approved the transfer of 56 acres of ash dyke land of HFCL’s Barauni unit to the Bihar State Power Generation Company Limited to settle its dues and for faster revival of the Barauni unit,” it said.
Waiving off the outstanding amount will facilitate de-registration of HFCL from the Board for Industrial and Financial Reconstruction (BIFR) by making its net worth positive and facilitate faster revival of the Barauni unit, it added.
The HFCL’s Barauni unit, lying defunct since January 1999, will create 400 direct and 1,200 indirect employment opportunities, as also serve as an anchor unit to the Jagdishpur-Haldia gas pipeline being laid by the Gas Authority of India, the ministry said.
According to the government, the GAIL pipeline is critical for the development and growth of the economy and infrastructure in eastern India.