Union Cabinet approves waiver of interest of Hindustan Organic Chemicals Limited

May 20: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has given its ex-post facto approval for waiver of interest of Rs.7.59 crore on Government of India loans of Hindustan Organic Chemicals Limited (HOCL), as on 31st March, 2005 in addition to the ‘Waiver of penal interest and interest on interest up to 31st March, 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 31st March, 2005.  Ex-post facto approval will also enable HOCL to settle the pending CAG audit observation in the matter.

Source: PIB