Friday, December 14, 2007

Government announces revival package for Mecon Ltd

New Delhi, Feb 8 The cabinet gave its approval Thursday to a revival package for public sector undertaking MECON Limited, involving an expenditure of Rs.2 billion besides several enhancing the retirement age of employees from 58 years to 60 years.
Union Finance Minister P. Chidambaram announced this after a cabinet meeting.
He said that this package would provide support to business and administrative restructuring. It will also provide working capital, reduce current liabilities, reduce borrowings and contain interest charges.
It will improve the net worth of the company and thereby further business opportunities.
Additionally, the revival package will also assure returns to the government as dividend and will eventually be repaid to the latter.
Besides, it will provide financial relief to the company and subsidise the cost of manpower restructuring taken up by the company.
The decision will also provide financial relief to the company and help reduce accumulated losses.

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