Steel ministry submitted Kolkata based Hindustan Steel Works Construction's INR 1,440 crore financial restructuring plan before the Cabinet Committee on Economic Affairs.

A source in the ministry said that "The note has been submitted for CCEA considerations on June 20th 2011. It was already approved by various ministries.”

The restructuring plan of the Hindustan Steel Works, which is in the business of construction of steel plant and building of infrastructure, including dams, bridges and roads, has already been cleared by the Finance Ministry.

The official said that post restructuring, the paid up share capital of the firm would rise to INR 700 crore from INR 171 crore now.

The turnover of the company, which is sitting on INR 2,043 crore order book and has emerged L1 bidder for an additional INR 1,320 crore order, is also expected to go up to INR 2,400 crore by 2020 from INR 1,000 crore recorded in the last fiscal, following the restructuring.

The official further said that "From the present loss making situation, HSCL will start generating net profit immediately after restructuring and in FY20, the net profit will reach INR 137 crore.”

The restructuring plan of the company has been prepared consisting of re-scheduling of bank loans, conversion of government loans into equity, waiver of outstanding interest and government guarantee fee, etc.

(Sourced from PTI)