The Cabinet Committee on Economic Affairs has approved a restructuring plan for Hindustan Organic Chemicals Limited (HOCL), a Central Public Sector Enterprise (CPSE) under the Department of Chemicals and Petrochemicals, at worth Rs 1,008.67 crore.
The company having units at Rasayani in Maharashtra and Kochi in Kerala are reportedly making continuous cash losses since 2011-12 resulting in acute shortage of working capital. Most 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, CCEA said.
The restructuring plan involves closing down the operations of all its non-viable plants at Rasayani except Di-Nitrogen Tetroxide (N2O4) plant, as it supplies and manufactures N2O4 for ISRO's space programme, Bureaucracy Today has learnt.
The CCEA said that financial implication of the plan is expected to be met partly from sale of 442 acres of HOCL land at Rasayani to Bharat Petroleum Corporation Limited (BPCL) at Rs 618.80 crore. The remaining balance of Rs.365.26 crore is said to be met through bridge loan from the Government, the CCEA said.
The funds is said to be utilized to liquidate liabilities of the company, including payment of outstanding salary and statutory dues of employees and repayment of Government guaranteed bonds of Rs.250 crore due for redemption in August to September, 2017.
The bridge loan amount is proposed to be repaid to the Government from the disposal of remaining unencumbered land and other assets of Rasayani unit, CCEA said.