i. Waiver of Penal Interest amounting to Rs. 250.89 crore in respect of VPT as on 31.03.2017 and further accruals thereon till date of approval of waiver; ii. VPT to pay penalty @0.25%of Penal Interest as on date of approval of waiver of Penal Interest; iii. VPT to pay the outstanding Principal of Rs. 44.69 crore and outstanding Interest as on the date of approval of waiver, in one single instalment in the Financial Year 2018-19.
Background:
Visakhapatnam Port Trust (VPT) had availed Rs. 110.41 crore of loan at different points of time beginning from 1970-71 to 1984-85 to finance its Outer Harbour Project to accommodate deep draft vessels of 100,000 DWT for Iron Ore exports. Each loan had a moratorium period of 5 years from the date of sanction. VPT made payments towards interest for the period of moratorium on various loans till 1978-79. However, it could not be continued with the repayment during the period from 1979-80 to 1989-90 due to revenue losses to the Port. It started repayment of loan amount (both principal and interest) with effect from 1990-91 onwards. As on 31.03.2017, VPT has a total loan liability of Rs. 354.23 crore (Rs. 44.69 crore towards defaulted Principal, Rs. 58.65 crore towards defaulted Interest and Rs. 250.89 crore towards Penal Interest).
Further, the Port has a future fund requirement of around Rs. 2671.79 crore for different upcoming developmental projects and employees' pension liabilities upto 2018-19. Therefore, the Port is not in a position to repay the total loan liability of Rs. Rs.354.23 crore.
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