Chapter 12



12.1 Under an agreement dated 4.11.1975 between Government of Iran and Steel Authority of India Limited, the former extended a loan of US$ 630 million to Steel Authority of India Limited, now assigned to Kudremukh Iron Ore Company Limited, towards financing the cost (including local cost) of implementation of Kudremukh Iron Project in Karnataka, for production and delivery of 15 million tonnes of Iron Ore concentrates to the National Iranian Steel Industries Company over a period of 20 years commencing from the later half of 1981.

12.2 The loan was repayable in 31 equal semi-annual installments beginning 5 years after the effective date of loan that is 9.2.1976 and carried an interest of 2.5% and a management fee of 0.5% per annum. The project has been completed and against the claims for disbursement an amount of US$ 246.94 million had been received.

12..3 The details of the credits are given in Annexure I.