Ownership of HSCL transferred to housing and urban affairs ministry
22 December 2017
The government has transferred the ownership of Hindustan Steelworks Construction Ltd (HSCL) from the steel ministry to the ministry of housing and urban affairs, with National Buildings Construction Corporation (NBCC) holding 51 per cent of equity in HSCL and the ministry of housing and urban affairs holding the remaining 49 per cent in it.
Subsequently, the board of HSCL has been reconstituted and a Share Holding Agreement (SHA) was signed in the presence of Chaudhary Birender Singh, minister of steel and Hardeep Singh Puri, minister of state in the ministry of housing and urban affairs.
The CMD or representative of NBCC would become the non-executive chairman of HSCL. Puri expressed confidence that the synergy would strengthen both the companies which have similar lines of business activity in achieving economies of scale for NBCC and would assist in better manpower optimisation.
NBCC has acquired 51 per cent of HSCL's share capital by investing Rs35.70 crore and HSCL has become a subsidiary of NBCC with effect from 1 April 2017. The proposal for restructuring of Hindustan Steel works Construction Ltd (HSCL) – a Company under the administrative control of Ministry of Steel was approved earlier this year.
HSCL will have a board of not more than 15 directors. The functional and nominee directors will be appointed as per the prescribed procedure by DPE.
Independent directors in the company would be appointed following the procedures prescribed by government/DPE and SEBI.
The company will have at least one woman director on the board in terms of Companies (Appointment and Qualification of Directors) Rules, 2014.
Both NBCC and HSCL have similar lines of business activity and takeover would result in economies of scale for NBCC and would assist in better manpower optimisation.
Both companies will benefit from each other's resources and expertise.
HSCL will be able to fulfill its commitment of execution of projects in hand and orders secured.