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Our Bureau

New Delhi , Dec. 12

THE Government has said that it has scheduled a debt-restructuring support of Rs 5,220 crore for IFCI Ltd to be spread over till 2011-12. The amount is to be utilised for meeting the principal and interest liabilities of the institution.

The Minister of State for Finance, Mr Anandrao Adsul, on Friday informed the Lok Sabha that out of the amount earmarked, a total of Rs 2,096 crore has already been released including Rs 523 crore as loan during 2002-03 and another Rs 1,573 crore as grant during 2003-04.

However, the Minister has clarified that the assistance is meant for restructuring of debts and liabilities and does not form part of any revival plan of the institution.

Mr Adsul said that the liabilities of the Government-guaranteed SLR bonds and retail borrowings of investors below Rs 1 lakh would be taken over by the Government. Moreover, the Government would service the borrowings of IFCI from ADB and KfW.

The Minister said that as part of efforts to reduce the losses further, the Government has asked IFCI to reduce non-performing assets to nine per cent by 2004-05 from 22 per cent by transferring the bad loans to its Asset Reconstruction Company within the next three years.

The institution has also been asked to stop fresh borrowing and deposit mobilisation while bringing down the staff strength by five per cent annually.

Mr Adsul said that IFCI would be required to submit a monthly report on compliance of the terms and conditions of the Rs 1,573-crore assistance.

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