Industrial Finance Corporation of India is not likely to accept the offer made by the labour ministry to keep the rate of interest on the investments made by the Employees Provident Fund at 10 per cent.
The one-month period that had been given by the labour ministry to IFCI to decide on the issue is already over. But IFCI has not got back to the ministry on this so far.
The EPF investment in IFCI as on March 31, this year is estimated at Rs 1,048.8 crore (Rs 10.49 billion) but due to the huge non-performing assets with IFCI, it has fallen behind in servicing the debt, which was contacted at between 12 and 13 per cent earlier. The institution has asked for reduction in the rate of interest on the debt to 9 per cent saying that is the maximum that it can pay to the Fund.
The total outstanding dues from IFCI to EPF as on March 31 this year stands at Rs 176. 98 crore (Rs 1.77 billion), while that from the last year is Rs 62.26 crore (Rs 622.6 million).
IFCI has made an adhoc payment of Rs 206.98 crore (Rs 2.07 billion) to EPF, pending a mutual consent on restructuring of the debt between it, the ministry and the EPF.
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