The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has given its ex-post facto approval for waiver of interest of ₹ 7.59 crore on Government of India loans of Hindustan Organic Chemicals Limited (HOCL), as on 31st March, 2005 in addition to the ‘Waiver of penal interest and interest on interest up to 31st March, 2005’ that was earlier approved by the CCEA in March, 2006 under the rehabilitation package for HOCL.

As this is almost 10 years old case, the interest amount of ₹ 7.59 crore has already been written off in the books of accounts of the Government and HOCL and the interest amount involved is not substantial.  It would be expedient at this stage to regularise the waiver of interest of ₹ 7.59 crore on GoI loans as on 31st March, 2005.  Ex-post facto approval will also enable HOCL to settle the pending CAG audit observation in the matter.

Ex post facto waiver of interest enables regularisation and audit closure for a public sector loan. The government granted ex post facto waiver of interest on GoI loans to Hindustan Organic Chemicals Limited to regularise an amount already written off in the accounts and to formalise relief provided under a prior rehabilitation package, thereby enabling HOCL to settle a pending audit observation.