Cabinet Approves Conversion of Government of India Loan
OREANDA-NEWS. The Union Cabinet under the Chairmanship of Prime Minister Shri Narendra Modi has approved the proposal of Department of Heavy Industry for enabling M/s Richardson & Cruddas (1972) Limited (R&C), a Central Public Sector Enterprise, to come out of purview of Board for Industrial and Financial Reconstruction (BIFR). 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.
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. However 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.