New Delhi, May 23 : The Cabinet Committee on Economic Affairs on Wednesday approved the waiving of penal interest on government loans to Visakhapatnam Port Trust amounting to Rs 250.89 crore.
Apart from the penal interest till March 31, 2017, it also approved waiving any further accrual till date, a government statement said.
As on March 31, 2017, the port trust has a total loan liability of Rs 354.23 crore of which Rs 44.69 crore is towards defaulted principal, Rs 58.65 crore towards defaulted interest and Rs 250.89 crore towards penal interest.
The government said the Visakhapatnam Port Trust will have to pay a penalty of 0.25 per cent of the penal interest and pay the outstanding principal of Rs 44.69 crore along with the outstanding interest in one single instalment in the Financial Year 2018-19.
The port trust had availed loans of Rs 110.41 at different points of time beginning from 1970-71 to 1984-85 to finance its Outer Harbour Project.
Each loan had a moratorium period of five years from the date of sanction.
While it made payments towards interest for the period of moratorium on various loans till 1978-79, the payments stopped from 1979-80 to 1989-90 due to revenue losses to the port, the statement said.
It started repayment of loan amount (both principal and interest) with effect from 1990-91 onwards.