The company had incurred a net loss of Rs. 54.59 crore during 2009-10 : CMD, HSCL

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INVC,,

Delhi,,

Beni Prasad Verma, Union Minister of State for Steel (Independent Charge) reviewed the performance of M/s Hindustan Steelworks Construction Ltd. (HSCL), Kolkata for the year 2010-11 today here in Udyog Bhawan. Shri Verma stressed that HSCL should be more competitive to remain in business.

Shri Malaya Chatterjee, CMD, HSCL was also present on the occasion. He apprised about the performance of the Company and highlighted its significant achievements during 2010-11 as well as the challenges before the Company. Shri Chatterjee said that the Company has achieved a record turnover of Rs. 1000 crores and earned operational profit of Rs. 64.10 crores in the year 2010-11. He said that the Company has orders of Rs. 5000 crores in hand which is all time high. Order book includes various social and infrastructure projects like construction of ESIC hospital at Gulburga, (Karnataka), Irrigation Project at Bagmati river (Bihar), Construction of Disaster Shelters in West Bengal, PMGSY in Jharkhand and Tripura in addition to various maintenance work in the Steel Plant of SAIL/ RINL etc.

Shri Chatterjee said that due to heavy interest burden on the outstanding loan, HSCL has incurred net loss of Rs. 36.53 crore during 2010-11. The company had incurred a net loss of Rs. 54.59 crore during 2009-10.

To revive the company by making it a vibrant and profit making PSE, Shri Chatterjee said that a proposal for its financial restructuring has been prepared consisting of re-scheduling of Bank VRS Loan, conversion of Govt. loans into equity, waiver of outstanding interest and Govt. Guarantee fee etc. He informed that the same would be submitted for consideration of the CCEA very soon. The most significant part of the restructuring proposal is that it does not involve any cash infusion by the Government. After approval of the restructuring plan, it is expected that HSCL will emerge into a profit earning company and its net worth will become positive. He said that thereafter, HSCL will be able to participate in high value tenders/ projects.

Shri Malay Chatterjee, CMD, HSCL also sought the support of the Ministry for award of projects and perennial jobs to HSCL on nomination basis from SAIL/ RINL as well as from the State Governments and other Ministries/ Departments of Government of India.

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