Steel ministry moots plans for revival of HSCL, BRL

Our Economic Bureau

New Delhi, Aug 24: THE steel ministry has proposed to the finance ministry revival plans for Hindustan Steel Construction Ltd (HSCL) and Bharat Refractories Ltd (BRL), said steel minister BK Tripathy on Friday.

Addressing members of the consultative committee attached to his ministry, he added the proposal seeks to grant Rs 182.28 crore non-plan loan for settlement of outstanding salary and statutory liabilities
of HSCL.

The steel ministry has also proposed to increase the existing government guarantee by Rs 250 crore to facilitate a further loan from banks for separation of more HSCL employees.

The liquidation of liabilities on account of pending salaries and wages should be linked to the voluntary retirement scheme (VRS) to attract more people to opt for it, Mr Tripathy said.

HSCL has been asked to strictly comply with the austerity measures to make the revival package successful, he said.

A revival package for BRL, as per the direction of the Board for Industrial & Financial Restructuring (BIFR), has been prepared and sent to the finance ministry, he added.

The finance ministry has advised to place the matter before the Cabinet Committee on Economic Affairs.

BIFR has been requested to extend the submission time of the revival package, Mr Tripathy said, adding that he hoped that the companies would revive with the implementation of the fresh packages.

He also outlined the steel PSUs’ contribution in exploring new markets for steel products.

The commercial and production strategy of the Steel Authority of India (SAIL) to act as an import substitute for API grades is already yielding results, he said.

SAIL has procured orders from some prestigious projects, Mr Tripathy said. It is also pursuing API grade export orders of over 0.16 million tonne to west Asia.

The Salem steel plant has taken up the corrugated stainless steel roofing of Kopar Khairnae station in Navi Mumbai, Mr Tripathy said. The plant is promoting new and diverse stainless steel applications in
the country.

The government is fully aware of the situation in the international steel market and is taking steps to reduce threats from cheap imports, he said.

The government is also fighting the anti-dumping and countervailing duties against steel imports from India.

A top-level delegation headed by the steel secretary recently visited the US and discussed the issue with the US government, Mr Tripathy said, adding that the exchanges have contributed to a better appreciation of India’s concern by the US administration.

Members of the consultative committee suggested to set up a committee to determine the real cause of the failure of revival packages of HSCL.

They also pleaded for a uniform VRS package for HSCL workers, at par with that of the executives.