Centre boosts equity of Hindustan Prefab, Tamil Nadu Tele; clears ECL expansion

The centre today announced the infusion of Rs128 crore equity to revive Hindustan Prefab even as it allowed Telecommunications Consultants India to raise stake in its joint venture Tamil Nadu Telecommunications Ltd (TLL) from Rs6.95 crore to Rs22.38 crore.

The government also gave its nod for an expansion of the Rajmahal Opencast Project of ECL from 10.5 million tonnes to 17 million tonnes per annum, involving capital investment of Rs153.82 crore.

The union cabinet today gave its approval to the conversion of Hindustan Prefab's outstanding government loan and interest thereon, totalling Rs128 crore as of 31 March 2008, into equity, thereby increasing its authorised capital from the existing Rs10 crore to Rs138 crore, an official release said.

This will allow the company to set off its accumulated losses against equity and emerge as a viable and profit-making central public sector enterprise in the coming years, the release said.

The company will also be in a position to re-start prefab manufacturing on its own, without seeking any financial assistance from the government, even as it continues with its existing activities.

HPL, a central public sector enterprise under the administrative control of the ministry of housing and urban poverty alleviation, was initially set up in 1950 as Hindustan Housing Factory, primarily to provide prefab houses using lightweight concrete panels for displaced persons from West Pakistan after partition.