New Delhi: Union Cabinet on Wednesday waived off loans worth more than Rs 9,079 crore owed by Hindustan Fertilizer Corporation Ltd (HFCL) as part of a financial restructuring package for the PSU.

The Cabinet approved waiver of government loan of Rs 1,916.14 crore as on March 31, 2015 and the outstanding interest amount of Rs 7,163.35 crore as on same date, according to an official statement.

The Cabinet also approved transfer of 56 acres of ash dyke land of Barauni unit to Bihar State Power Generation Company Ltd to settle dues of HFCL for faster revival of the unit. Waiving off the outstanding amount will facilitate de-registration of HFCL from Board for Industrial and Financial Reconstruction (BIFR) by making its net worth positive. It will clear the way for faster revival of Barauni unit of HFCL, it added. This unit will create 400 direct and 1,200 indirect employment opportunities. Barauni unit will also serve as anchor unit to Jagdishpur- Haldia gas pipeline being laid by Gas Authority of India Limited (GAIL), which is critical for development and growth of economy and infrastructure in eastern India. This unit was lying defunct since January 1999. There is no functional urea unit in the Eastern part of the country except for two small units at Namrup (Assam). — PTI