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Cabinet approves waiver of interest of Hindustan Organic Chemicals

Business Finance

Press Trust of India  |  New Delhi 

The Centre on Wednesday approved interest waiver worth Rs 7.59 crore of Hindustan Organic Chemicals Ltd (HOCL).

The Cabinet Committee on Economic Affairs (CCEA) has given its ex-post facto approval for waiver of interest of Rs.7.59 crore on the central government loans of HOCL as on March 31, 2005, an official statement said.

This is in addition to the 'waiver of penal interest and interest on interest up to March 31, 2005' that was earlier approved by the CCEA in March, 2006 under the rehabilitation package for HOCL.

"As this is almost 10 years old case, the interest amount of Rs.7.59 crore has already been written off in the books of accounts of the government and HOCL and the interest amount involved is not substantial.

"It would be expedient at this stage to regularise the waiver of interest of Rs 7.59 crore on GoI loans as on March 31, 2005," the statement said.

The ex-post facto approval will also enable HOCL to settle the pending CAG audit observation in the matter.

In 2017, the CCEA had approved a restructuring plan of loss-making PSU Hindustan Organic Chemicals Ltd (HOCL) with an financial implication of Rs 1,008.67 crore.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, May 20 2020. 17:56 IST