 "Cabinet clears conversion of R&C loan into equity")
The conversion of the government's Rs 526.59 crore loan, including interest, to state-owned Richardson & Cruddas (1972) into equity to bring it out from the purview of BIFR got Cabinet approval on Wednesday.
"For this purpose, the Cabinet approved the conversion into equity of the Government of India loan of Rs 101.78 crore given to the company, along with the interest amounting to Rs 424.81 crore accrued on this loan," an official statement said.
The Cabinet chaired by Prime Minister Narendra Modi approved the proposal of the Department of Heavy Industry for enabling Richardson & Cruddas (1972) (R&C), a central public sector enterprise, "to come out of the purview of the Board for Industrial and Financial Reconstruction (BIFR)".
The statement further said the Cabinet also approved in-principle the strategic disinvestment of Nagpur and Chennai units of the heavy engineering company and shifting of operations from Mumbai to other locations.
However, the company's land in Mumbai will be converted from lease hold to 'Occupation Class II' so as to enable the firm to identify the best use of this piece of land for optimal utilisation as per government guidelines.
Richardson & Cruddas (1972) is into fabrication of process equipment for various segements like steel manufacturing plants and the Railways. It also operates in rental business.