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SC dismisses Ispat petition on SAIL SDF loan waiver

Our Bureau

NEW DELHI, March 7

THE last hurdle in the financial restructuring programme of Steel Authority of India Ltd (SAIL) has been finally cleared with the Supreme Court, on Monday, dismissing a special leave petition filed by Ispat Industries Ltd against the waiver of loans amou nting to Rs. 5,073 crores advanced from the Steel Development Fund (SDF).

Ispat industries Ltd had appealed to the Supreme Court against the Calcutta High Court's order of February 3, allowing for a waiver of SDF loans. The Union Cabinet had subsequently, on February 15 cleared the package.

The Calcutta High Court, in its judgment, held that the Union Government is fully competent to grant any relief including writing off the loan f given to it by the SDF as ``the same will be in public interest''.

It further noted that special treatment or preference to the public sector is legitimate and lawful. ``The public corporations constituted the third arm of the Government and are set up with the duty of carrying out specified Government functions in the national interest. SAIL as a PSU had many obligations in a welfare state,'' it had said.