The Steel Ministry is hopeful of an early clearance to the modified Hindustan Steelworks Construction Ltd (HSCL) financial restructuring proposal.
Mr P.K. Mishra, Steel Secretary, told Business Line that it was “just a matter of time”.
The Finance Ministry had sought certain changes in the original proposal and the Steel Ministry had incorporated them.
“Once the Finance Ministry clears the final proposal, it will take a couple of months to complete the remaining steps, including obtaining the Cabinet approval”, Mr Mishra added.
The Ministry has already circulated a Cabinet note on the financial restructuring plan involving conversion of past Government loans (Plan and non-Plan as well as interest on non-Plan loans) into equity and also Plan loan interest waiver.
Operating profit
According to Mr Malay Chatterjee, CMD of HSCL, the operating profit for 2010-11 has improved to Rs 80 crore (Rs 69 crore) and the turnover has gone up to Rs 1,000 crore (Rs 800.35 crore).
The clearance of the financial restructuring plan would allow the company to shed the “ailing” tag.
Post-clearance, the company is expected to report a token net profit for 2010-11.
The current order book stands around Rs 5,000 crore.
Last week, itbagged the turnkey contract for building the proposed second campus of the Aligarh Muslim University at Murshidabad in West Bengal.
The cost of the project is stated to be Rs 1,200 crore.