NEW DELHI, 21 MAY 2020: Indian Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has given its ex-post facto approval for waiver of interest of INR 7.59 crore (USD $1 million) on government of India loans of Hindustan Organic Chemicals Limited (HOCL), as on 31 March, 2005 in addition to the ‘Waiver of penal interest and interest on interest up to 31 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 INR 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, the Ministry of Chemicals and Fertilizers said in a statement.
It would be expedient at this stage to regularize the waiver of interest governments loans as on 31 March, 2005. Ex-post facto approval will also enable HOCL to settle the pending CAG audit observation in the matter.