RITES to get Rs 117.75 crore for project in Iraq
RITES Ltd will receive Rs 117.75 crore, along with interest with effect from October 2001, as payment by the Indian government for the project executed by the company in Iraq.
By INDIATIMES NEWS NETWORK |
MUMBAI: RITES Ltd will receive Rs 117.75 crore, along with interest with effect from October 2001, as payment by the Indian government for the project executed by the company in Iraq.
The payment, to be made in cash in 2008-2009, will be through additional budget allocation by the ministry of finance to the railways ministry.
The company, an enterprise of the ministry of railways, has filed a draft red herring prospectus with SEBI for an initial public offer.
RITES executed an operation and maintenance project in Iraq during 1988 to 1990, payment for which was held up due to imposition of UN sanctions on Iraq. This resulted in restriction in remittance of funds outside Iraq.
To mitigate the financial problems of the Indian exporters arising due to sanctions on Iraq, the Indian government decided to provide relief to the exporters in 2001 by making payment / issuance of bonds.
RITES could then get only part payment in 2003 against the said approval.
The payment, to be made in cash in 2008-2009, will be through additional budget allocation by the ministry of finance to the railways ministry.
The company, an enterprise of the ministry of railways, has filed a draft red herring prospectus with SEBI for an initial public offer.
RITES executed an operation and maintenance project in Iraq during 1988 to 1990, payment for which was held up due to imposition of UN sanctions on Iraq. This resulted in restriction in remittance of funds outside Iraq.
To mitigate the financial problems of the Indian exporters arising due to sanctions on Iraq, the Indian government decided to provide relief to the exporters in 2001 by making payment / issuance of bonds.
RITES could then get only part payment in 2003 against the said approval.
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