CCEA provides relief to RITES, IRCON against outstanding dues

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New Delhi, Mar 13 (UNI) The Cabinet Committee on Economic Affairs (CCEA) today gave its approval for providing relief to RITES Ltd and IRCON International Ltd on outstanding dues for projects executed in Iraq in the 1980s on deferred payment basis, an official spokesperson said.

RITES and IRCON will be paid the balance amounts as per the approved exchange rate of Rs 47.86 per dollar at which private exporters were paid, to maintain the parity in treatment of all the exporters.

The two will then be paid balance amounts of Rs 117.75 crore and Rs 16.06 crore respectively in cash through additional budget allocation provided by the Finance Ministry to Railways Ministry, for this purpose.

After this, RITES and IRCON will be paid interest in cash at 8.75 per cent per annum effective from October 1, 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 the 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 and increase competitiveness of Indian project exporters to bid in international market.

It will also maintain parity in treatment among all the exporters, and facilitate to determine best share value for forthcoming IPOs.

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