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Cabinet approves waiver of of penal interest amounting to Rs.1076.59 crore in respect of Paradip Port Trust

Newdelhi:23/5/18;The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi has given its approval for waiving of Penal Interest on Government Loans to Paradip Port Trust (PPT) as per following:

  1. Waiver of penal interest amounting to Rs.1076.59 crore in respect of PPT as on 31.03.2017 and further accruals thereon till date of approval of waiver.
  2. PPT to pay penalty @ 0.25% of Penal Interest as on the date of approval of waiver of penal Interest.
  3. PPT to start the re-payment of outstanding principal of Rs. 387.74 crore and outstanding interest as on date of approval of the waiver and the re-payment to be completed in two instalments in 2018-19 and 2019-20.

Background:

Paradip Port Trust (PPT) had availed Rs.642.69 crore of loan under different heads at different points of time beginning from 1967 to 2002 to finance its various infrastructure projects. Each loan was to be repaid in 20 yearly installments with a five year moratorium period. PPT was incurring losses upto the year 1987-88 and there was huge deficit in revenue account due to insufficient cargo. As a result of which  PPT could not start its repayment as per schedule. As on 31.03.2017, PPT has a total loan liability of Rs. 1743.69 crore (Rs.387.74 crore towards defaulted principal, Rs.279.36 crore towards interest and Rs. 1076.59 crore towards penal interest).

Further, the Port has a future fund requirement of around Rs.6,695 crore for different upcoming developmental projects and employees’ pension liabilities upto 2018-19. Therefore, the Port is not in a position to repay the total loan liability of Rs.1,743.69 crore.

About Editor in chief

Ashok Palit has completed his graduation from Upendranath College Soro, Balasore and post graduation from Utkal University in Odia Language and literture.. He has also carved out a niche for himself as a scribe of eminence after joining the profession in 1988. He is also an independent media production professional. He brings loads of experience to Advanced Media, Ashok Palit as a cineaste has been active in film criticism for over three decades. As a film society activist, he soared to eminence for his profound commitment to the art film appreciation and aesthetics of cinema. His mode of discourse is often erudite but always lucid and comprehensible marked by a perfect acumen so rare in the field. A film aesthete with an immense fond of critical sensibilities, he wrote about growth and development of odia cinema in New Indian Express, The Times of India, The Hindustan Times, The Asian Age and Screen. He has been working as an Editor for Cine Samaya from 2002-2004.. He had made solid contribution on cinema in many odia Dailies and weekly such as Samaj, Prajatantra, Dharatri, Samaya, Satabadi, and weekly Samaya.

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