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Business News/ Companies / Steel ministry to transfer stake in HSCL to housing ministry
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Steel ministry to transfer stake in HSCL to housing ministry

Consequent upon taking over of HSCL by NBCC, the steel ministry would transfer its 49% HSCL shareholding to ministry of housing and urban affairs (MoHUA), NBCC said in a statement

The cabinet had last year approved the financial restructuring of state-run HSCL and its takeover by NBCC. Photo: Hemant Mishra/MintPremium
The cabinet had last year approved the financial restructuring of state-run HSCL and its takeover by NBCC. Photo: Hemant Mishra/Mint

New Delhi: Steel ministry on Friday agreed to transfer its entire 49% stake in Hindustan Steelworks Construction Ltd (HSCL) to housing and urban affairs ministry.

The move will pave way for state-owned construction firm NBCC India Ltd to take full control of its subsidiary HSCL. The cabinet had last year approved the financial restructuring of state-run HSCL and its takeover by NBCC. In April this year, NBCC acquired HSCL as its subsidiary by holding 51% of the equity shareholding.

Consequent upon taking over of HSCL by NBCC, the steel ministry would transfer its 49% HSCL shareholding to ministry of housing and urban affairs (MoHUA), NBCC said in a statement. A quadripartite agreement to this effect was signed on Friday among steel ministry, housing and urban affairs ministry, NBCC and HSCL, “facilitating NBCC to have complete control over financial, administrative and operating decisions of HSCL".

After transfer of 49% stake, the board of HSCL would be reconstituted. There would be re-designation of the post of chairman and managing director (CMD), HSCL as managing director and CMD of NBCC would be the chairman on the board of HSCL.

In presence of steel minister Chaudhary Birender Singh and housing and urban affairs minister Hardeep Singh Puri, the agreement was signed by and among steel secretary Aruna Sharma, secretary MoHUA D.S. Mishra, NBCC’s CMD Anoop Kumar Mittal and HSCL’s CMD M. Bhaduri.

In April this year, HSCL’s board allotted Rs35.7 crore equity share capital, i.e. 3.57 crore equity share of Rs10 each, constituting 51% of HSCL’s post issued share capital to NBCC. As a result, HSCL became a subsidiary of NBCC.

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Published: 22 Dec 2017, 06:14 PM IST
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