CCEA Approves Waiver Of Loan Worth Over Rs 4 Cr Outstanding Against Sikkim Mining Corporation
Mumbai: In another development, Cabinet Committee on Economic Affairs (CCEA) has approved exemption of loan and interest repayment of more than four crore rupees against Sikkim Mining Corporation.
The CCEA chaired by Prime Minister Narendra Modi on Wednesday approved repayment of a loan of Rs 54 lakh and the total amount of Rs 370.40 lakh for an interest therein, the total amount of Rs 424.40 lakh and interest earned on the total amount. , From 1 April 2019, this approval is outstanding against the Sikkim Mining Corporation.
According to an official release, the excess accumulation of interest on the principal loan will be eliminated and the liquidation process of the corporation will be completed.
The Sikkim Mining Corporation (SMC) was established on 27 February 1960 as a joint venture between the Government of Sikkim and the Government of India.
Every year since its inception, this loss was occurring. To optimize the financial health of the corporation, a consultant was engaged in 1999, suggesting inter-alia diversification of the corporation’s activities and strengthening technical staff, coupled with layoffs of additional manpower at lower levels.
However, keeping in view the recurring losses incurred by the corporation since its inception, the recommendations of the Accountant General of Sikkim, and the advice given by the erstwhile Planning Commission, were mesmerized by both partners of the JVC (state and central government). Road map for the corporation’s future in 2003.
Based on the report of the advisor and the 107th report of the Public Accounts Committee (PAC) of the State Legislative Assembly of Sikkim, the state and central governments took a joint decision to discontinue the corporation’s mining operations and settle all its dues and liabilities.
Consequently, the Corporation’s mining operations at Bhotang and Fachi Khani mines were discontinued from January 1, 2007. The liabilities of the employees of the Corporation towards VRS etc. were fixed by the amount released by the erstwhile Planning Commission (Rs. 3.41 crore). Ministry of Development of North Eastern Region (Rs. 25.5 crores).
The corporation’s liabilities of Rs.685.60 lakhs towards the state government of Sikkim were waived by the state government to Sikkim. An amount of Rs. 11.21 lakhs earned from the sale of a scrap of the machinery of the corporation were returned to the Government of India.
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