Soon after the Trinamool Congress and the Congress combine got a thumping majority in the Bengal polls, Union finance minister Pranab Mukherjee cleared the R1,440-crore revival package of Hindustan Steel Works Construction (HSCL).

HSCL, the ailing PSU, under the administrative control of the Union steel ministry, became the third central PSU in the state after Burn Standard and Braithwaite, to get central assistance for a fresh lease of life.

Revenue department officials under the Union finance ministry told FE Pranab Mukherjee cleared the revival package, three years after it was referred to the ministry. It has now been referred to the Cabinet, and is expected to be cleared by June. This would be followed by a likely official announcement by both Mukherjee and the new Bengal chief minister Mamata Banerjee.

HSCL?s R1,440-crore revival package consists of a complete waiver of R513 crore plan loan and R376 crore interest accrued on it, while it would get 10 years to repay the bank loan of R518 crore. A plan loan of R33 crore would be converted to government equity.

HSCL chairman and managing director Malay Chatterjee said the company?s current order book worth R5,000 crore was a sign of its potential to turn around and that its operating profits were on the rise. The company in 2010-2011 registered an operating profit of R80 crore up from R69 crore in 2009-2010. Its turnover also grew to R1,000 crore in 2010-11 from R800 crore in 2009-10. The company might earn a net profit in 2011-12, with the revival package coming through,officials said.

HSCL, referred to the Board for Reconstruction of Public Sector Enterprises (BRPSE) in 2007, earned its last net profit in 1978-79. However, after a gap of 24 years in 2002-03 it could earn a meager operating profit of R3.94 crore and thereafter continuing to post operating profits over the last nine years.

Originally formed to set up steel plants, HSCL has presently diversified into a construction company undertaking projects in the power, road and housing sectors besides executing projects in the steel sector.

However, the other two central PSUs, Burn Standard and Braithwaite, has already come under the administrative control of the Railways from the Heavy Industries ministry. Burn Standard is yet to get clearance from BIFR, though Braithwaite?s revival package has sailed through last year. It is currently executing railways order of making 1,200 wagons.