The union cabinet gave its in principle approval for formation of a JV of Hooghly Dock & Port Engineers Limited with a private sector player selected through an open bidding process.

The cabinet also approved write off of government of India loan and interest amounting to INR 628.86 crore as on March 31st 2011 and grants in aid of INR 111.08 crore required for MAT liability on book profit and deemed income arising due to waiver of loan, interest etc.

It also approved grants in aid assistance of INR 21crore for implementing VRS; Government of India Loan of INR 16 crore for working capital and non plan assistance for salaries & wages of employees & meeting Statutory Liabilities to be continued till the formation of JV.

An expenditure of approximately INR 777 crore will be incurred towards this. Apart from socio economic impact, it ensures viability of the Company followed by revenue earnings to the government of India.

HDPEL, situated at Kolkata, one of the oldest shipyards in India was established in 1819 in private sector. Subsequently, Port Engineering Works owned and managed by Andrew Yule Co Ltd, was merged with Hooghly Docking & Engineering Co Ltd, in 1973. The government of India nationalized the company in 1984 through an Act of Parliament. The company has two units, one at Salkia and the other at Nazirgunge in Howrah District on the bank of the river Hooghly. HDPEL also has a ship repair unit in Kidderpore for wet repairs. The company has built more than 100 vessels for various Port Trusts, Andaman & Nicobar Administration, DGLL, Indian Navy, ONGC etc. It has also undertaken repairs of more than 400 vessels for various organizations.

(Sourced from www.pib.nic.in)