Government to move BRPSE to bail out CCI

The Ministry of Heavy Industries, Government of India, proposes to move the Board for Reconstruction of Public Sector Enterprises (BRPSE) to seek Rs886-crore loan-cum-interest waiver for Cement Corporation of India (CCI). The draft rehabilitation scheme of CCI intends to convert Rs355 crore of the non-plan loan extended to CCI into 0.1 per cent preference shares. CCI had debts of Rs1,787 crore as on 31 Mar 2005. It had a negative net worth of Rs1,759 crore and liabilities of Rs1,787 crore. The scheme proposes sale of assets of CCI’s seven non-functional units to mobilise Rs617 crore. CCI will seek permission from BRPSE to raise more than Rs300 crore as loan from the Government of India for its modernisation plan.