New Delhi, Aug 1 (IANS) The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved interest-free loans of over Rs 1,200 crore to Hindustan Urvarak and Rasayan Limited (HURL) for construction of fertiliser revival projects at Sindri, Gorakhpur and Barauni.
The interest-free loans would be equivalent to the “interest during construction” component of Rs 422.28 crore, 415.77 crore and 419.77 crore respectively for Gorakhpur, Sindri and Barauni projects, an official statement said.
“The total value of the interest-free loans will be Rs 1257.82 crore. The loans shall cover only the interest accrued during the scheduled period of construction and any escalation due to time or cost overrun will be borne by the joint venture company,” it said.
“The loan shall be disbursed in first three years during construction. The repayment shall be spread over a period of 11 years with a moratorium period of three years of disbursement period during construction and the repayment phased over the next eight years,” it added.
Hindustan Urvarak and Rasayan Limited is a joint venture company of National Thermal Power Corporation, Indian Oil Company Limited, Coal India Limited and Fertilizer Corporation of India Limited.