Govt approved packaage for Bharat Wagon and Engineering Ltd

New Delhi, June 26 (UNI) The Government today approved the revival package for the Bharat Wagon and Engineering Ltd (BWEL), Patna and its transfer to the Railways.

As part of the package, the Government will provide Rs 26.83 crore Non-Plan fund for clearing the dues of the employee and other outside liabilities up to March 31, 2008 The Government will write off the Plan and Non-Plan loan amounting to Rs 79.81 crore as on March 31, 2008.

It will waive normal and penal interest of Rs 45.95 crore up to March 31, 2007. No interest would be levied beyond that period.

The Railway Ministry will make a capital investment of about Rs 13.66 crore for replacement of plants and machinery and other infrastructure.

The Ministry will also assist the company to raise working capital of Rs five crore and allow moratorium of repayment of loans and interest holiday for five years.

With these concessions the net worth of the Company will become positive.

The Railways will also make an investment of Rs 41 crore for upgradation of plant and machinery in BWEL over next few years.

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