New Delhi, May 1 (UNI) India today waived dues of Indian companies on Cuba amounting to Rs 347 crore and decided to reimburse the principal and interest of the dues to individual companies, totalling Rs 128 crore.
The decision, taken at the weekly Cabinet meeting, would facilitate resumption of credit facilities and insurance cover by EXIM Bank and Export Credit Guarantee Corporation of India (ECGC) to Cuba to enhance bilateral trade and investment, Finance Minister P Chidambaram told reporters.
Indian companies, CIMMCO Birla Ltd, PEC Ltd and Hiralal Printing Works had exported goods to Cuban companies. EXIM Bank of India extended credit facilities to Cuban buyers and CIMMCO Birla Ltd.
While some amount has been received by the exporters, most of the dues remain unpaid by Cuban companies.
The total principal dues amounting to Rs 135.41 crore and accumulated interest of Rs 211.78 crore as on March 31, 2007 are outstanding on Cuba.
Most of the exports of CIMMCO Birla Ltd, PEC Ltd and Hiralal Printing Works and credit by EXIM Bank were covered by ECGC insurance cover. Dues amounts were paid by ECGC as per insurance policy.
UNI SN RP KP2019