The Hindu Business Line : Govt announces revival package for HEC

Mr Sharad Pawar, Minister for Agriculture, Consumer Affairs, Food and Public Distribution, with Mr S. Sundareshan, Chairman, Forward Markets Commission, in Mumbai on Saturday. - Shashi Ashiwal

New Delhi , Dec. 17

THE Government has decided to revive the Ranchi-based loss-making public sector unit, Heavy Engineering Corporation and announced a package including waiver of non-plan loans and its interest amounting to Rs 1,101 crore.

The package will ensure the re-functioning of the company, which has been making losses for years.

The Information and Broadcasting Minister, Mr Priyaranjan Dasmunshi, told newspersons that the Cabinet on Thursday had approved a proposal to waive non-Plan loan amounting to Rs 1,101 crore and also decided to give a fresh bridge loan of Rs 102 crore. The bridge loan would be repaid over three years.

The Government has also decided to convert its plan loan of Rs 15.27 crore into equity. Under the revival scheme, the Government has also decided to transfer HEC's residential properties to the State Government.

The loss-making company has around 10,000 employees at present, he said.

Petrol regulatory board Bill

The Cabinet has also given approval for introduction of the Petroleum and Natural Gas Regulatory Board Bill 2004 in the ongoing winter session of the Parliament. The Bill envisages setting up of a statutory board that would regulate the refining, processing, distribution, marketing and sale of petroleum, petroleum products and natural gas to protect the interests of consumers.

Mr Dasmunshi said it would also ensure uninterrupted and adequate supply of petroleum and petroleum products and natural gas in all parts of country, including remote areas at fair price and to promote competitive markets.

Gas regulatory board

The Cabinet also approved creation of posts with support of staff for the Petroleum and Natural Gas Regulatory Board and Appellate Tribunal.

Competition Act to be amended

The Cabinet gave its approval to amend the Competition Act 2002. The amendment is being proposed to enable the Ministry of Company Affairs to meet the concerns expressed by the Supreme Court in its judgment on January 20, 2005.

Indo-Pak bus service

The Cabinet also cleared the signing of an agreement with Pakistan to launch bus services between Amritsar and Lahore, and Amritsar and Nankana Sahib. The Cabinet also approved the setting up of a Standing Committee after the agreement is signed.

The agreement is aimed at expanding economic cooperation and facilitating people-to-people contact between the two countries, Mr Dasmunshi said.

The trial run for Amritsar-Lahore bus service was to be conducted in the second week of October this year. But due to the earthquake, it was rescheduled to December.

As per the agreement, the designated operators for the bus service will be Punjab Roadways from India and Pakistan Tourism Development Corporation (PTDC) from Pakistan.