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CCEA nod for Artificial Limbs Manufacturing Corp financial restructuring | Canindia News

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CCEA nod for Artificial Limbs Manufacturing Corp financial restructuring

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CanIndia New Wire Service 0 comments

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New Delhi, June 24 (IANS) The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved conversion of the interest of Rs.52.14 crore, including penal interest, on a loan of Rs.21.82 crore made earlier to the Artificial Limbs Manufacturing Corporation of India (ALIMCO) into equity.

“The increase in capital base support will strengthen the financial position of the corporation to fulfill the objectives for which it was established,” a CCEA communique said of ALIMCO, which was set up in 1972 as a non-profit organisation.

“It will ensure availability of increased working capital required for enhanced targeted business and also enable the corporation to seek loans from financial institutions/banks on favorable terms,” the CCEA said.

The government had given interest bearing loans totalling Rs.21.82 crore to the company from 1977-78 to 2001-02, for meeting its working capital requirements.

According to the ministry of social justice and empowerment, though ALIMCO has fully repaid the loan amount to the government, interest was not paid and continued to be shown as accrued.

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