HSCL Financial Restructuring Package
Mr. Pranab Mukherjee as the Finance Minister of India has cleared the modified financial restructuring package for HSCL. On May, 10 2011, one of the largest in the post liberalization period the INR 586.91 core restructuring package was cleared; Top government sources told Business Line. The revised package also permits conversion of the non cumulative preferential shares, repayable in the ten installments starting from March, 31 2031, non plan loan of INR 513.10 core into 30 year.
The earlier proposals of seeking waiver of the reimbursement of interest subsidy of INR 23.10 and non Plan loan drooped by the Ministry of Steel ,HSCL’s administrative ministry. Targeted by the end of June 2011, the steel ministry would now move a fresh note for the seal of approval from the Cabinet Committee on Economic Affairs. After 10 years in 2010-2011, Kolkata headquartered INR 1,000 core public sector infrastructure companies to record its first net profit.
The government interest subsidy and guarantees will continue at a 50 basis point higher than comparable G Sec rate, according to the latest plan. The other components of the agreed restructuring are the accrued interest on it of INR 32.37 core into equity and conversion of Plan loan of INR 36.5 core.