Hindustan Copper Ltd to get loan waiver
The government is planning a capital restructuring for Hindustan Copper Limited (HCL), in order to pull out the country’s copper giant from the ongoing financial crisis. The government is considering to waive 7.5 percent noncumulative redeemable preference share amounting to Rs 180.73 crore and adjust it against accumulated losses.
The sources said that the restructing of capital through reduction of face value of equity share from Rs.10 to Rs.5 amounting to Rs 382.21 crore and its adjustment against the accumulated losses was another measure being considered.
The Mines Ministry is envisaging only non-cash support of about Rs.637 crore in addition to waiver of Rs 8.29 crore outstanding dues of the PSU against externally aided projects amounting to Rs 8.29 crore.
For raising bank loan worth Rs.150 crore, the Government was also considering to waive guarantee fees of Rs.15 crore guarantee relesased during 2006-07. The sources pointed out that the plans were also there to convert non-plan loan amounting to Rs 50 crore into equity and to waive its loan of Rs 1.03 crore for 2005-06 and subsequent accruate in the future.
The sources said that the proposed fiscal measures would enable the copper giant to withstand volatility of London Metal Exchange (LME) price cycle and not seek any further budgetary support from the government.
The government is considering to restore the superannuation age to 60 years to enable HCL avail of services of experienced and skilled employees.
