Cement Corp to be revived: Cabinet

New Delhi, Mar 9 (UNI) The government today announced a revival package for the Cement Corporation of India Limited (CCI).

The package was approved at a Cabinet meeting chaired by Prime Minister Manmohan Singh, Parliamentary Affairs Minister Priya Ranjan Dasmunsi told reporters.

Under the CCI package seven non-operating units at Mandhar, Kurkunta, Akaltara, Charkhi Dadri, Delhi Grinding Unit/Bathinda Grinding Unit, Nayagaon and Adilabad will be closed down and the employees would be offered a voluntary separation scheme, which has been approved by the BIFR.

It would facilitate the sale of assets of all seven non-operational units through asset sale committee based on fresh valuation.

The Cabinet approved the amendment of Dalmia Dadri Cement Ltd (Acquisition and Transfer of Undertakings) Act, 1981.

The units at Bokajan, Tandur and Rajban will be expanded at a cost of Rs 90.51 crore, Rs 43.80 crore and Rs 6.8 crore respectively.

Interest amounting to Rs 886.22 crore would be waived, while the interest beyond March 31, 2005 would be frozen. The GOI loan of Rs 355.43 crore would be converted into 0.01 per cent redeemable preference share capital and the unpaid government guarantee fee of Rs 10.6 crore on past loans would be waived.

The government would arrange a plan assistance of Rs 30.67 crore (50 per cent equity and 50 per cent loan), non-plan assistance of Rs 153.62 crore and make a provision of GoI guarantee of Rs 15.7 crore without payment of guarantee fee.

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