| The Western India Trustee & Executor Company, trustees to HMT's bond issue, had earlier written to the company, expressing concern over the delayed payment of interest on another bond issue of HMT. |
| It is learnt that the government is making good its obligations and ensuring that payment is received by public sector undertakings (PSUs) where the centre stands as guarantor to the respective bond issues. |
| Scarred by bad publicity and disapproval from the global rating agency Standard and Poor's, the centre has now ensured that payment obligations are provided for well before the due date. |
| The earlier missed interest payments of two PSUs had prompted Standard & Poor's to post a warning of the potential implications for India's sovereign credit ratings. |
| The centre has already made payments on the government-guaranteed bonds issues of Instrumentation Ltd and HMT. Trustees of Instrumentation Ltd, the Western India Trustee, received a call from the company yesterday confirming the receipt of payment from the government. "The same is expected to be dispatched to us shortly," the trustees said. |
| The Centre had earlier failed to meet its obligation in regard to the Rs 35 crore bond issue of Instrumentation Ltd to which it stood as a guarantor. |
| It had also failed to pay the full overdue interest amount on HMT's 8.5 per cent bond issue. This is despite Western India Trustee having invoked the government guarantee in early December, prior to the December 31 payment due date. Both these PSUs come under the heavy industries ministry. |
| Under the bond scheme, the company was suppose to deposit necessary funds 45-60 days in advance into an escrow account. On its inability to do so, the government guarantee was invoked and the Centre was required to make the necessary payment three days ahead the due date. |
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