Cabinet approves Rs 1257.82 cr interest-free loan to revive 3 fertiliser units

The Union Cabinet on Wednesday approved the proposal of Department of Fertilisers to grant interest-free loan equivalent to the interest during construction component of Rs 422.28 crore, 415.77 crore and 419.77 crore for Gorakhpur, Sindri and Barauni projects respectively to Hindustan Urvarak and Rasayan Limited (HURL) fertiliser projects, an official statement said. The total loan value will be of Rs 1257.82 crore and cover only the interest accrued during the scheduled period of construction and any escalation due to time or cost overrun will be borne by the JV Company, the statement said.