Government to move BRPSE to bail out CCI

Government to move BRPSE to bail out CCI
Published: 09 June 2005

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.