Date:06/05/2005 URL: http://www.thehindubusinessline.com/2005/05/06/stories/2005050601500200.htm

Back Revival package for Hindustan Salts cleared

Our Bureau

New Delhi , May 5

THE Union Cabinet on Wednesday approved the financial restructuring and revival of Hindustan Salts Ltd (HSL) on the lines of the recommendation of the Board for Reconstruction of Public Sector Enterprises and the draft rehabilitation scheme of BIFR.

As part of the restructuring and revival package, loan amount (principal) of Rs 28.84 crore as on March 31, 2005 would be waived. Further, interest and penal interest accrued and due as on March 31, 2005 amounting to Rs 40.18 crore would be waived.

The package also involved a budgetary support of Rs 4.28 crore in the form of equity for the purpose of capital expenditure. The Government would also provide guarantee, if necessary, to HSL for raising loan of Rs 4.28 crore from financial institutions for capex purposes.

An official spokesperson said the balance sheet of HSL would be cleaned so as to enable it to access the market for funds.