Government to convert Richardson & Cruddas loan into equity

The government on Wednesday said that it will convert its loan to Central Public Sector Enterprise Richardson & Cruddas (R&C) into equity.

The proposal of Department of Heavy Industry for enabling R&C to come out of the purview of the Board for Industrial and Financial Reconstruction (BIFR) was approved by the Union Cabinet.

"For this purpose cabinet approved the conversion into equity of the Government of India loan of Rs 101.78 crores given to the company, alongwith the interest amounting to Rs 424.81 crore accrued on this loan," an official statement by the Union Cabinet said.

"The cabinet further approved in principle, the strategic disinvestment of Nagpur and Chennai units of the company and shifting of operations from Mumbai land to other locations of company."

The cabinet statement elaborated that the company's land at Mumbai will be converted from lease hold to "Occupation Class II" so as to enable the company to identify the best use of this piece of land for optimal utilization as per government guidelines.

--IANS

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