RIICO plans to offload its equity at half of the par value and will charge 50 per cent lower rate of interest in case of such units which have been taken onver by it with their net worth having been eroded by 100 per cent.The number of such units was not much but still RIICO was worried to get its investments back at theearliest.

The corporation will also give 100 per cent waiver in the interest for such units which have been pending with BIFR or AAIFR. If the book value of the shares had fallen below par and the losses have been incurred for four years, such units would be given 50 per cent of interest waiver. And if the bookvalue was above par and the cash losses have been incurred for at least two years, the waiver in the interest would be 40 per cent.

Sandhu said that waiver in the interest ranging from 40 per cent to 30 per cent would also be allowed in case of other assisted units, depending on the bookvalue.

The managing director said that another major policy decision, approved by the board of directors, was to allow four per cent reduction in the interest to such units where buy-back would become due in future and the promoters complied with the terms and conditions.

While giving the equity support to the units coming up in Rajasthan, RIICO would now adopt a more selective approach judged by its pastexperience.