Not very exciting, but railway-related (I think).
Thursday, March 13, 2008
The Cabinet Committee on Economic Affairs today gave its approval for providing the relief against the outstanding dues of RITES Ltd. and IRCON International Ltd. on outstanding dues for projects executed in Iraq in 1980’s on deferred payment basis in the following manner:
(i) RITES and IRCON will be paid the balance amounts as per the approved exchange rate of Rs.47.86 per US$ at which private exporters were paid, to maintain the parity in treatment of all the exporters;
(ii) RITES and IRCON will be paid balance amounts of Rs.117.75 crore and Rs.16.06 crore respectively in cash through additional budget allocation provided by Ministry of Finance to M/o Railways for this purpose and
(iii) RITES and IRCON will be paid interest in cash @ 8.75% per annum effective from 1st October 2001 on Rs.117.75 crore and Rs.16.06 crore respectively till principal and interest both are paid by additional budget allocation in addition to above stated balance amount of Rs.117.75 crore and Rs.16.06 crore.
It would project the creditability of the Government to help exporters: solve liquidity problem of project exporters who have faced unprecedented situation due to their money being held up; increase competitiveness of Indian project exporters to bid in international market; maintain parity in treatment among all the exporters, and facilitate to determine best share value for forthcoming IPOs.