Cabinet Committee on Economic Affairs has given its ex-post facto approval for waiver of interest of Rs.7.59 crore on the government loans of Hindustan Organic Chemicals Ltd (HOCL) as on March 31, 2005. This was in addition to the ‘waiver of penal interest and interest on interest up to March 31, 2005’ which was approved by the CCEA in March, 2006 under the rehabilitation package for HOCL. Ex-post facto approval will also enable HOCL to settle pending CAG audit observation in the matter. The CCEA was chaired by Prime Minister Narendra Modi.

As this is an almost 10-year-old case, the interest amount of Rs.7.59 crore has already been written off in the books of accounts of the government and HOCL and the interest amount involved is not substantial. It would be expedient at this stage to regularise the waiver of interest of Rs.7.59 crore on GoI loans as on March 31, 2005.