On Friday steel ministry agreed to transfer its entire 49% stake in Hindustan Steelworks Construction Ltd (HSCL) to housing and urban affairs ministry (MoHUA).
The move will make progress easier for state-owned construction firm National Buildings Construction Corporation Limited (NBCC) India Ltd to take full control of its subsidiary HSCL.
Last year, the cabinet had approved the financial restructuring of state-run HSCL and its acquisition by NBCC.
In April this year, NBCC acquired HSCL as its subsidiary by holding 51 percent of the equity shareholding.
NBCC said in a statement that consequent upon taking over of HSCL by NBCC, the Steel Ministry would transfer its 49 percent HSCL shareholding to Ministry of Housing and Urban Affairs (MoHUA).
A quadripartite agreement to this effect was signed today among Housing and Urban Affairs Ministry, steel ministry, HSCL and NBCC, “facilitating NBCC to have complete control over financial, administrative and operating decisions of HSCL”.
There would be re-designation of the post of CMD, HSCL as Managing Director and CMD of NBCC would be the chairman of the board of HSCL, after transfer of 49 percent stake.
In presence of Housing and Urban Affairs Minister Hardeep Singh Puri and Steel Minister Chaudhary Birender Singh, the agreement was signed by and among Secretary of MoHUA D S Mishra, Steel Secretary Aruna Sharma, HSCL’s CMD M Bhaduri and NBCC’s CMD Anoop Kumar Mittal.