Companies & Sectors
Government approves financial restructure of HSCL; and takeover by National Buildings Construction Corporation
The government on Wednesday approved the financial restructure package for Hindustan Steel Works Construction (HSCL).
 
The decision was taken by the union cabinet in its meeting chaired by Prime Minister Narendra Modi.
 
The cabinet also approved HSCL's takeover by National Buildings Construction Corporation (NBCC).
 
According to the cabinet, under the approved proposal, the government will write off the accumulated losses of the company, which amount to Rs.1,585 crore.
 
"After writing off of the accumulated losses, the equity and paid up capital of HSCL will become Rs.34.3 crore," the cabinet said in a statement.
 
"NBCC will infuse funds of Rs.35.7 crore as equity into HSCL. HSCL will become subsidiary of NBCC. The equity and paid-up capital of HSCL will become Rs.70 crore." 
 
The statement said the move will reduce the shareholding of the government in HSCL to 49%.
 
"NBCC and HSCL are Government of India enterprises with similar lines of business activities," the statement said.
 
"The decision will benefit in economies of scale for NBCC and would assist in better manpower utilisation."
 
The statement further said that after the takeover, HSCL will be able to execute its pending projects. 
 
"Government of India will provide one-time support of Rs.200 crore for settling term loans availed from commercial banks," the statement added.
 
"It will also bear the contingent liability of Rs.110 crore (approximately) as decided by the Supreme Court in compensation for VRS (voluntary retirement scheme) liabilities."
 
In addition, the government will also pay the outstanding interest on the bank loans for the financial year 2015-16 amounting to approximately Rs.44 crore.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Cabinet nod to loan waiver for Hindustan Fertiliser
The union cabinet on Wednesday waived off loans of more than Rs.9,079 crore accumulated by Hindustan Fertiliser Corporation Ltd. (HFCL) as part of a financial restructuring package for the state-run unit.
 
"The cabinet approved the waiver of government loan of Rs.1,916.14 crore (as on March 31, 2015) and the outstanding interest on the loan as on date (interest of Rs.7,163.35 crore as on March 31, 2015)," a chemicals and fertilisers ministry statement said here.
 
"The cabinet also approved the transfer of 56 acres of ash dyke land of HFCL's Barauni unit to the Bihar State Power Generation Company Limited to settle its dues and for faster revival of the Barauni unit," it said.
 
Waiving off the outstanding amount will facilitate de-registration of HFCL from the Board for Industrial and Financial Reconstruction (BIFR) by making its net worth positive and facilitate faster revival of the Barauni unit, it added.
 
The HFCL's Barauni unit, lying defunct since January 1999, will create 400 direct and 1,200 indirect employment opportunities, as also serve as an anchor unit to the Jagdishpur-Haldia gas pipeline being laid by the Gas Authority of India, the ministry said.
 
According to the government, the GAIL pipeline is critical for the development and growth of the economy and infrastructure in eastern India.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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PM directs expediting Bhilai Steel plant modernization
Prime Minister Narendra Modi on Wednesday directed that the modernization and expansion work of the Bhilai Steel Plant should be expedited.
 
Chaired the 12th interaction through PRAGATI -- the Information and Communications Technology (ICT)-based, multi-modal platform for pro-active governance and timely Implementation -- Modi took "serious note" of the delay in the project, an official release said.
 
He directed the steel and heavy engineering ministries to sort out all pending issues related to it and also maintained that the project should be "completed at the earliest", an official release said.
 
Modi had launched his ambitious multi-purpose and multi-modal platform Pro-Active Governance And Timely Implementation (PRAGATI) on March 25 last year.
 
The unique integrating and interactive platform is aimed at addressing a common man's grievances, and simultaneously monitoring and reviewing important programmes and projects of the government of India as well as projects flagged by state governments, officials said.
 
The Prime Minister on Wednesday reviewed the progress towards handling and resolution of grievances related to disbursement of scholarships/fellowships to students, an official release said here.
 
According to the release, the Prime Minister sought to know the reasons for the delay and enquired about the progress of Aadhaar-linkage to disbursal of benefits to students.
 
He urged the concerned officials to increase the speed of addressing grievances, and aim for quick and effective resolution of students' issues with regard to scholarships and fellowships.
 
The Prime Minister also reviewed the progress of vital infrastructure projects in the road, railway, steel and power sectors, spread over several states including Tripura, Mizoram, Uttar Pradesh, Karnataka, Odisha, Telangana, Chhattisgarh and Maharashtra.
 
The railway projects reviewed included the Akhaura-Agartala rail line, which will be a vital link between India and Bangladesh.
 
He also reviewed the progress of the "waste to wealth" initiative under the Swachh Bharat Mission, an official release said. Various states gave details about the progress of works under this initiative, it said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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