Restructuring of Hindustan Organic Chemicals approved -Governance Now

Restructuring of Hindustan Organic Chemicals approved

Operations of Rasayani unit of HOCL would be shut down, except Di-Nitrogen Tetroxide (N2O4) plant

GN Bureau | May 19, 2017

#Hindustan Organic Chemicals #PSU #restructuring #cabinet #ISRO

The cabinet committee on economic affairs has approved a restructuring plan for Hindustan Organic Chemicals Ltd. (HOCL), a loss making central public sector enterprise under the department of chemicals and petrochemicals.

The enterprise, having units at Rasayani (Maharashtra) and Kochi (Kerala), has been making continuous losses since 2011-12, resulting in acute shortage of working capital. “A majority of its plants have remained shut down during the last few years. It could not pay regular salary and statutory dues to the employees since February, 2015,” a PIB release said.

According to the plan, operations of all the non-viable plants at Rasayani unit of HOCL would be shut down except Di-Nitrogen Tetroxide (N2O4) plant which would be transferred to ISRO.

The N2O4 plant is of strategic importance as it is the only indigenous source of N2O4 which is used as liquid rocket propellant by ISRO in the space launch vehicles.

Financial implications of the plan is Rs 1,008.67 crore which is to be met partly from sale of 442 acres HOCL land at Rasayani to Bharat Petroleum Corporation Ltd (Rs 618.80 crore) and remaining (Rs 365.26 crore) through bridge loan from the government.

Comments

Other News

‘Oral cancer deaths in India cause productivity loss of 0.18% GDP’

A first-of-its-kind study on the economic loss due to premature death from oral cancer in India by the Tata Memorial Centre has found that this form of cancer has a premature mortality rate of 75.6% (34 premature events / 45 total events) resulting in productivity loss of approximately $5.6 billion in 2022

Days of Reading: Upendra Baxi recalls works that shaped his youth

Of Law and Life Upendra Baxi in Conversation with Arvind Narrain, Lawrence Liang, Sitharamam Kakarala, and Sruti Chaganti Orient BlackSwan, Rs 2,310

Voting by tribal communities blossoms as ECI’s efforts bear fruit

The efforts made by the Election Commission of India (ECI), over last two years, for inclusion of Particularly Vulnerable Tribal Groups (PVTG) communities and other tribal groups in the electoral process have borne fruit with scenes of tribal groups in various states/UTs participating enthusiastically in t

GST revenue for April 2024 at a new high

The gross Goods and Services Tax (GST) collections hit a record high in April 2024 at ₹2.10 lakh crore. This represents a significant 12.4% year-on-year growth, driven by a strong increase in domestic transactions (up 13.4%) and imports (up 8.3%). After accounting for refunds, the net GST

First Magahi novel presents a glimpse of Bihar bureaucracy a century ago

Fool Bahadur By Jayanath Pati (Translated by Abhay K.) Penguin Modern Classics, 112 pages, Rs 250 “Bab

Are EVs empowering India`s Green Transition?

Against the backdrop of the $3.5 billion Production-Linked Incentive (PLI) scheme launched by the Government of India, sales of Electric Vehicles (EVs) are expected to grow at a CAGR of 35% by 2032. It is crucial to take into account the fact that 86% of EV sales in India were under the price bracket of $2