CCEA approves restructuring of Central Electronics Limited

New Delhi, Aug 3 (UNI) The Cabinet Committee on Economic Affairs (CCEA) today approved capital restructuring of Central Electronics Limited (CEL) with a view to improving the financial position of the company.

Briefing newspersons on the decisions of the CCEA, Finance Minister P Chidambaram told newspersons here that improvement of the finances of the CEL will enable it to go in for further capacity expansion in line with market demands and thus taking full advantage of increased global demand.

The capital restructuring is to be carried out in the following manner: (a) Moratorium on the principal amount of Rs 12.32 crores for 10 years and interest and penal interest of Rs 4.25 crores till March 31,2006, is to be waived; (b) Waiver of interest and penal interest of Rs 1.77 crore till March 31, 2006, on the unsecured Plan loan of Rs 0.58 crore sanctioned by the erstwhile Department of Electronics upto 1990-91; (c) conversion of unspent grants of Rs 9.68 crores under Plan funds on March 31, 2004, released but unspent for R&D projects into Grants under non-Plan; (d) conversion of unsecured Plan loan amounting to Rs 0,58 crore sanctioned by the erstwhile Department of Electronics upto 1991-92 into Grants under non-plan.

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