New Delhi, Sep 16 (IANS) The union cabinet Thursday approved the plan to revive the National Film Development Corporation Ltd (NFDC) with the infusion of an additional equity of Rs.3 crore.
Besides this, the outstanding government loan of Rs.19.77 crore along with accumulated interest of Rs.8.63 crore on it will also be converted into equity.
The corporation will use a fresh infusion of Rs.3 crore and internal accurals of outstanding dues of Rs.2.95 crore to finance its computer hardware and software and also to establish an art house digital exhibition network and to renovate its properties.
With the conversion of loans and outstanding interest into equity, the corporation will get rid of heavy interest burden and liability to repay the loan.
This will also help the NFDC to clean up its balance sheet and enable it to start afresh.
The net worth of the corporation will turn positive and the paid up and authorized capital of NFDC will increase to Rs.45.40 crore and Rs.45.39 crore respectively.
