Rs 2,957 crore investment nod for Eastern Coal Fields, loans waive

New Delhi, Oct 5 (UNI) The government today announced a revival package for the Eastern Coalfields Limited (ECL) to enable the company to invest Rs 2,956.83 crore and waived unsecured loans amounting to Rs 519 crore.

The current account balance of Rs 1,532 crore of ECL as on t April 31, 2003 by Coal India Limited (CIL) will be converted into equity share capital in proportion to ECL thus bringing down its negative networth.

An investment of Rs 2,956.83 crore from 2003-04 to 2012-13 for augmentation of production will be met from internal resources of ECL, Finance Minister P Chidambaram said after the Cabinet Committee on Economic Affairs (CCEA) meeting here.

The Cabinet also gave its nod for the waiver of non-payment of loans amounting to Rs 519 crore during 2008-09 by CIL. The electricity duty of Rs 18 crore per annum from 2004-05 for five years will also be waived, Mr Chidambaram said.

There would also be a waiver of interest on unsecured loans amounting to Rs 168.65 crore upto 2002-03 and future interest of Rs 33.73 crores per annum from 2004-05 to 2008-09 by CIL.

Mr Chidambaram said there would be a waiver of RS 82.47 crores of apex charges for the earlier years up to March 31, 2004 and further waiver of service charges at the rate of Rs 14 crore per annum from 2004-05 by CIL.

The CCEA has also approved that arrears of National Coal Wage Agreement-V11 (NCWA-VII) will be disbursed in three instalments by March 2007.

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