Small industrial units brought under hire/purchase scheme

New Delhi, May 15 (UNI) Two hundred and ninety-five allotees of 'flatted' factories near Okhla Industrial Estate would be brought under the hire-purchase scheme, thus enabling them to become owners of their small industrial units, the Delhi cabinet decided today.

As many as 228 flats of 46 sq meters, 66 flats of 44.6 sq meters and one flat of 22.89 sq meters were allotted to the entrepreneurs on monthly rental basis at Rs 648, Rs 611 and Rs 295 respectively in December 1981.

By implementing the hire-purchase scheme, Delhi Government has now decided to charge only interest at the rate of 12.25 per cent, an official spokesman said. The allotees would be allowed to make the payment under the scheme from June 2006 to March 2011.

The cabinet also approved a proposal for conversion of Rs 3,450 crore loan granted to Delhi Transco Ltd. under category of reform loan to soft term loan.

The government had granted the loan to enable DTL to bridge the gap between the power purchase cost and bulk supply tariff received by it from Discoms.

An amount of Rs 1364 crore, Rs 1470 crore, Rs 480 crore and Rs 136 crore were released to DTL from 2002 to 2006.

The government decided to convert the loan into interest-free soft term loan to avoid unwarranted tariff hike in Delhi. The interest repayment itself would have increased in retail supply tariff for consumers by 5 per cent to 7 per cent, the spokesman said.

DTL has been granted moratorium of four years on the repayment of principal and interest amount in respect of Rs 3450 crore, and repayment of only principal amount of loan in prolonged 15 years in equal instalment of Rs 230 crore per year after the expiry of moratorium period.

The cabinet also sanctioned the posts in different scales in the Delhi Legal Services Authority to enable it to ensure smooth functioning. The posts of a Project Officer, an Administrative Officer and three junior level posts would be filled up on contractual basis.

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