The Cabinet Committee on Economic Affairs (CCEA) yesterday approved a slew of proposals, including a financial restructuring package of Rs 1,072 crore for Hindustan Steel Works Construction Ltd (HSCL).
The government will waive all interest payments of Rs 975 crore as on March 31.
There will also be a moratorium on repayment and interest exemption on all government loans for 10 years.
Besides, the government will provide Rs 79.33 crore as fresh loan to the company for revival.
In 1994, the committee of secretaries had recommended winding up of HSCL, in the red since 1977-78.
The company's turnover increased from Rs 337 crore in 1993-94 to Rs 415 crore in 1996-97. Operational profits went up from Rs 3.33 crore to Rs 8.09 crore.
The CCEA also approved additional port facilities to cater to the expansion of Mangalore Refinery from 3 million tonnes per annum (mpta) to 9 mpta at an estimated cost of Rs 236.5 crore.
The cost includes capitalised interest of Rs 37 crore and foreign exchange component of Rs 3.5 crore at December 1998 prices.
The project will have to be completed within 30 months of the date of sanction of the project. The Ninth Plan outlay for the project is Rs 120 crore. Th
