New Delhi: The Steel Ministry has proposed to write off Hindustan Steelworks Construction Limited’s (HSCL) outstanding liabilities worth Rs1,300 to revive the ailing PSU and bail it out from its current fiscal morass.
“We have proposed to the Board of Reconstruction of Public Sector Enterprises (BRPSE) that HSCL’s outstanding liabilities worth Rs1,300 crore be written off as a measure to revive the ailing company,” a top Steel Ministry official told PTI.
Arguing that the PSU’s huge outstanding liabilities were on account of its past legacies, he pointed out that HSCL has pruned its huge manpower by offering them Voluntary Retirement Scheme and currently it has only 1,600 employees.
“The PSU has accumulated huge liabilities be cause it had to borrow loans to offer VRS and we have suggested that these dues along with the accrued interest be written off,” he reasoned.
Consultancy firm A F Fergusson and Company, hired by the company to suggest measures to revive HSCL, has also favoured writing off the loans and infusion of fresh capital to enable it buy latest machinery and recruit fresh personnel to meet the growing demand of the market.
“When we perused the order book of HSCL we found that the PSU had orders worth Rs775 crore, which explains that they have a huge market to cater to,” the official said.
He reasoned that with Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL) announcing to invest around Rs50,000 crore ($12 billion) for new projects, HSCL would have a substantial role to play in fructifying these projects, as it PSU specialises in laying foundations.