The steel ministry has transferred its 49% stake in Hindustan Steelworks Construction (HSCL) to the ministry of housing and urban affairs, a government release said. The agreement was signed by steel secretary Aruna Sharma, housing and urban affairs secretary Durga Shankar Mishra, NBCC’s CMD Anoop Kumar Mittal and HSCL’s CMD M Bhaduri, “facilitating NBCC to have complete control over financial, administrative and operating decisions of HSCL”. “After signing the SHA (share holding agreement), the shares held by the steel ministry (49%) have been transferred to the housing and urban affairs ministry. The board of HSCL would be reconstituted and CMD or representative of NBCC would become the non-executive chairman of HSCL,” the release said. Last year in May, the Union cabinet had approved the financial restructuring of HSCL and its takeover by NBCC. In April this year, the HSCL board allotted Rs 35.7 crore equity share capital, i.e. 3.57 crore equity share of Rs 10 each, constituting 51% of HSCL’s post issued share capital to NBCC .
HSCL’s board had allotted Rs 35.7 crore equity share capital, constituting 51% of HSCL’s post issued share capital to NBCC. As a result, HSCL became a subsidiary of NBCC. NBCC and HSCL have similar business activities. Established in 1964 for construction of modern integrated steel plants, HSCL has diversified into other civil infrastructure construction. NBCC is a Navratna enterprise, in the construction sector.
