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The Government has approved a grant of Rs 182 crore to the state-owned Heavy Engineering Corporation for meeting its capital gains tax liability.
“The Cabinet Committee on Economic Affairs (CCEA) today approved providing a grant of Rs 182.43 crore to Heavy Engineering Corporation Ltd (HEC) for meeting the capital gains tax liability arising out of implementation of its revival package,” Information and Broadcasting Minister Manish Tewari told reporters here after the meeting.
The Ranchi-based company is engaged in the manufacturing and supply of iron and steel castings, non-ferrous castings, steel plant equipment, mining equipment and structural items like coke oven, rolling mills and railway crankshafts from its three operating units.
HEC was referred to the Board for Reconstruction of Public Sector Enterprises (BRPSE) and a revival plan was approved by the Government in 2005.
“HEC has set an example of turnaround after the revival package was sanctioned by the Government in December 2005.
The company, which could make profits only in the years 1975-76, 1976-77 and 1988-89 since its inception in 1958, has been making profits for the last five years consecutively and is growing at a good pace,” an official statement said.
During 2011-12, the company registered a total income of Rs 715.69 crore against Rs 678.13 crore in the previous fiscal.
Net profit, however, declined to Rs 8.58 crore from Rs 38.14 crore. This was attributed to an increase in material and manpower cost.
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