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The Cabinet Committee on Economic Affairs today approved the financial and Functional Restructuring of the Jute Corporation of India (JCI):
It has been decided to write off the entire outstanding loan of Rs.195.68 crore and interest of Rs.313.97 crore on the loan (as on March 31, 2003) against the accumulated losses (Rs.144.17 crore), subsidy receivable (Rs.301.88 crore) and JCI’s claim (Rs.64.13 crore) on National Jute Manufactures Corporation (NJMC) as per CGA’s recommendations.
JCI will be provided subsidy on a continuous basis, from the year 2003-04 to offset the losses on account of MSP operations. The quantum of subsidy will include the difference between the purchase and sale price of raw jute by JCI. While calculating MSP losses, the reimbursement of overhead costs to JCI should not exceed 10 per cent of the value of purchases under MSP in a particular financial year.
Ex-post facto approval has been given for the revision of Industrial Dearness Allowance (IDA) pay scales with effect from January 1, 1992 in respect of the employees covered under IDA pay scales in the JCI, Kolkata. CCEA has also approved further revision of IDA pay scales with effect from January 1, 1997 in respect of the employees covered under IDA pay scales in the JCI, Kolkata. JCI will bear the additional expenditure on account of the revision of pay scales from its own resources.
Financial restructuring of JCI through clearing of its balance sheet and further strengthening its financial footing so that it can play an effective role in maintaining MSP and in stabilizing prices through large scale buffer stock operations.
RK/LV
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