RITES, Ircon to get relief on Iraq projects

New Delhi: The Government has decided to provide relief to the Railways’ public sector units — RITES and Ircon International — against outstanding dues of Rs 133.81 crore for projects executed in Iraq in the 1980s.

The Government has also decided to provide the interest rate in cash. The move comes in the run-up to the initial public offer (IPO) of RITES, and as Railways mulls an Ircon IPO.

According to an official release, the Cabinet Committee on Economic Affairs on Thursday gave its approval for providing relief against the outstanding dues of RITES and Ircon International for projects executed in Iraq in the 80’s on deferred payment basis.

RITES and Ircon will be paid the balance amounts as per the approved exchange rate of Rs 47.86 per dollar, it said, adding that RITES and Ircon will be paid balance amounts of Rs 117.75 crore and Rs 16.06 crore respectively in cash through additional budget allocation provided by Ministry of Finance to the Railway Ministry. Moreover, they would both be paid interest in cash at 8.75 per cent per annum, effective from October 2001.