Govt speaks to banks for Anglo French Textiles loan settlement
In a bid to revive the defunct Anglo French Textiles (AFT) mill or utilise the vast stretch of land for other growth-oriented ventures, the government is clearing its liabilities, mainly with the public sector banks.
Puducherry
In a bid to revive the defunct Anglo French Textiles (AFT) mill or utilise the vast stretch of land for other growth-oriented ventures, the government is clearing its liabilities, mainly with the public sector banks.
The government had approached UCO Bank, Indian Bank, Canara Bank and Union Bank of India for clearance for a one-time settlement of the principal amount to the tune of Rs 23.5 crore, which is inclusive of the capitalised principal amount (adding some portion of interest).
In a series of high-level meetings the officials had with the representatives of these banks, the government indicated its willingness to settle the amount in six months’ time, provided the banks wrote off interest.
Once the liabilities with the nationalised banks are settled, the government could then move ahead with a plan to settle the dues of government-controlled Pondicherry Industrial Promotion Development and Investment Corporation Limited (PIPDIC) and Puducherry Power Corporation Limited (PPCL).
The government recently approached the banks for a no-objection certificate to auction the movable assets of AFT, including machinery and building scraps. The Metal Scrap Trade Corporation Limited, a venture under the Union Ministry of Steel, had been appointed as the nodal agency for the purpose.
The government is keen on reviving the mill in a new format or use the land for growth-oriented ventures. In fact, during the President’s rule last year, the two advisors of the Lt. Governor appointed by the Union government had submitted a detailed report to the Union Ministry of Home Affairs, suggesting the utilisation of the land owned by the mill for economic activity, including the setting up of a textile park, the official said.
Source: The Hindu
Image Source: Google Images
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