Financial Daily from THE HINDU group of publications
Monday, Feb 18, 2002
Financial Daily from THE HINDU group of publications Monday, Feb 18, 2002 |
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Industry & Economy
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Disinvestment Corporate - Restructuring Govt to consider Rs 500-cr facelift for Hind Copper Our Bureau
NEW DELHI, Feb. 17 A MAJOR financial restructuring package for Hindustan Copper Ltd will be considered by the Union Cabinet shortly with the aim of dressing up the ailing company and making it attractive for private suitors. "The financial restructuring package costing about Rs 500 crore will be considered by the Union Cabinet in the next few days,'' Government sources said. The restructuring package will, however, be implemented only upon successful privatisation of the company, which has accumulated losses of over Rs 350 crore. The process of disinvestment will be initiated only after getting the Cabinet's approval on the proposed financial restructuring plan, the sources added. According to a revised plan cleared by the Cabinet Committee on Disinvestment (CCD) last December, the Union Government will privatise the company by selling its entire 98 per cent stake in the company to a strategic partner. The subscribed capital of the company currently stands at Rs 543.61 crore. A.F. Ferguson has been hired to act as global advisors to the Government for the privatisation exercise. The Government's earlier plan to induct a strategic partner in the company by hiving off its units at Taloja and Khetri came a cropper. The company's huge debt profile also proved to be a dampener. "During the earlier round, some of the bidders said that the unit-wise sale was not attractive and wanted the company to be sold as a whole and not in parts. So, the Government has now decided to sell its entire equity of 98 per cent to a strategic partner,'' the sources said. Hindustan Copper owns three mines in Khetri (Rajasthan), Malanjkhand (Madhya Pradesh) and Ghatsila (Jharkhand), with a total ore capacity of 46.4 lakh tonnes per annum. The company has two smelter plants at Khetri and Ghatsila with a combined metal capacity of 47,500 tonnes per annum. It also has a 60,000 tonnes per annum continuous cast copper rod plant at Taloja (Maharasthra).
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