January 01, 2026 10:22 am (IST)
Follow us:
Cabinet approves financial restructuring of HSCL and its takeover by NBCC
New Delhi, May 25 (IBNS): The Union Cabinet, chaired by Prime Minister Narendra Modi, has given its approval for financial restructuring of Hindustan Steel Works Construction Limited (HSCL).
It has also approved its takeover by National Buildings Construction Corporation Limited (NBCC), a Central Public Sector Enterprise under the Ministry of Urban Development.
The existing paid up equity capital of the HSCL is Rs.117.1 crore. Under the proposal, the Government of India Non Plan Loan and Plan Loan along with accumulated interest thereon and outstanding guarantee fee worth Rs.1502.2 crore will be converted into equity and equity capital of the company will be raised to that extent.
The paid up equity capital of the company will become 1619.3 crore. Against this, the accumulated losses of Rs.1585 crore, as on 31.3.2015, will set off.
After writing off of the accumulated losses, the equity and paid up capital of HSCL will become Rs. 34.3 crore. NBCC will infuse funds of Rs. 35.7 crore as equity into HSCL. HSCL will become subsidiary of NBCC with NBCC holding 51% equity holding.
The shareholding of Government of India in HSCL will be reduced to 49%. The equity and paid up capital of HSCL will become Rs.70 crore.
NBCC and HSCL are Government of India enterprises with similar lines of business activities.
The decision will benefit in economies of scale for NBCC and would assist in better manpower utilization. NBCC and HSCL will benefit from each other’s resources and expertise. HSCL will be able to fulfill its commitments of execution of projects and the orders.
Government of India will provide one-time support of Rs.200 crore for settling term loans availed from commercial banks.
It will also bear the contingent liability of Rs.110 crore (approximately) as decided by the Supreme Court in compensation for VRS liabilities.
In addition, Government of India will also pay the outstanding interest on the bank loans for the financial year 2015-16 amounting to Rs. 44 crore approximately (till 31.03.2016) and the amount of interest up to the date of takeover of HSCL by NBCC.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
Latest Headlines
S Jaishankar meets Khaleda Zia’s son Tarique Rahman, hands him PM Modi's condolence letter
Wed, Dec 31 2025
‘Vote theft is in electoral rolls, not EVMs’: Abhishek Banerjee leads TMC charge against EC over Bengal voter re-verification
Wed, Dec 31 2025
Faridabad horror: Woman gang-raped in moving van for over two hours, thrown on road
Wed, Dec 31 2025
2025: An Unsettled World—and an India at the Crossroads
Wed, Dec 31 2025
No third party involved: India govt sources refute China’s Operation Sindoor ceasefire claim
Wed, Dec 31 2025
Final goodbye to Khaleda Zia: Jaishankar flies to Dhaka for funeral
Wed, Dec 31 2025
NRI dies in accidental gun discharge at home in Punjab’s Firozepur
Tue, Dec 30 2025