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New
Delhi: IFCI
Ltd, may cease to exist after April 1. The Finance Minister,
Mr Jaswant Singh, yesterday announced "IFCI is being
restructured through transfer of its impaired assets to
an asset reconstruction company and its merger into another
large public sector bank," he said. He added that
as a run up the institution has implemented a voluntary
retirement scheme to facilitate the restructuring.
Mr
Singh said that the Government would also attempt to
finalise all steps to convert IDBI into a bank by the
same target date of April 1.
"Steps
to restructure IDBI by converting it into a bank are
already in hand. However, in accordance with the mandate
given by Parliament, the Ministry of Finance will preserve
and strengthen IDBI''s role as a development financial
institution.
The
Bill to restructure IDBI and to convert it into a bank
was passed by Parliament in the recently concluded winter
session. The Finance Minister has assured the Lok Sabha
that its development financial
institution characteristics would be preserved and had
also given the assurance that the Government holding
in the institution would not come down below 51 per
cent.
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