Home >Politics >Policy >Cabinet panel okays closure of sick Hindustan Fluorocarbons

NEW DELHI : The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved the closure of Hindustan Fluorocarbons Limited (HFL), a sick subsidiary of public sector enterprise Hindustan Organic Chemicals Ltd (HOCL), to reduce the burden on the exchequer.

The government will provide an interest-free loan of 77 crore to HFL to help pay for voluntary retirements and outstanding salary and other dues to its 88 employees.

The company has been making a loss since 2013-14 and has a negative net worth of 43 crore. As of 31 March 2019, it had accumulated losses of 62.81 crore. It was registered with the erstwhile Board for Industrial and Financial Construction (BIFR) as a sick company.

The government will recover the interest-free loan by selling off land and other HFL assets after settling liabilities. “If the land/assets sale proceeds are not sufficient to repay the loan amount, the balance loan amount is to be written off," CCEA said.

The cabinet also approved amendments dealing with the goods and services tax (GST), value-added tax (VAT) and state excise laws in view of merger of Dadra and Nagar Haveli and Daman and Diu with Daman as the capital. “The amendments not only bring uniformity in taxation laws but also strengthen the system of laws," the cabinet said.

It approved the revised cost estimates for establishment of permanent campuses of six new National Institutes of Technology (NITs), at a total cost of 4,372 crore by 2021-22. These NITs were established in 2009 and started functioning from academic year 2010-11 in their respective temporary campus with very limited space and infrastructure.

“With the approved revised cost estimates, these NITs will be fully functional from their respective permanent campuses by 31 March 2022. The overall student capacity in these campuses will be 6,320," the government said.

The cabinet also approved the extension, by six months up to 31 July, of the term of the commission established to examine the issue of sub-categorization of Other Backward Classes.

Four pacts, to be signed during the forthcoming visit of Brazil’s president Jair Bolsonaro who arrives in New Delhi on Friday were also approved by the cabinet. Bolsonaro is to be the guest of honour at the Republic Day parade on Sunday.

One of the pacts approved by the cabinet on mutual legal assistance in criminal matters aims to enhance effectiveness of both the countries in investigation and prosecution of crime through cooperation and mutual legal assistance in criminal matters. “In the context of transnational crime and its linkages to terrorism, the proposed agreement will provide a broad legal framework for bilateral cooperation with the Federative Republic of Brazil in investigation and prosecution of crime as well as in tracing, restraint, and confiscation of proceeds and instruments of crime as well as the fund meant to finance terrorist acts," it said.

Other pacts aim to strengthen cooperation in the oil and natural gas sector, cement cooperation in mining, and increase bilateral cooperation on early childhood care.

Elizabeth Roche contributed to this story.

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