By IANS,
New Delhi : The Cabinet Committee on Economic Affairs Thursday cleared the take over of the Bharat Wagons and Engineering Ltd (BWEL) by the ministry of railways from the department of heavy industry.
It also approved the financial restructuring of the BWEL.
The railways will invest Rs.4.1 billion to upgrade the BWEL’s plant and machinery over the next few years.
It will also assist the company to raise working capital of Rs.50 million, and allow a moratorium of repayment of loans and interest holiday for five years.
The government will provide Rs.268.3 million from its non-Plan fund for clearing dues up to March 31 and other liabilities.
The government will also write off all Plan and non-Plan loans amounting to Rs.798.1 million, as well as normal and penal interests of Rs.459.5 billion. It will also levy no further interest beyond March 31, 2007.