November 02, 2001
‘18’HSCL CONCENTRATES ON NON-STEEL SECTOR
Hindustan Steel Works Construction Ltd. (HSCL) was created in 1964 as a public sector undertaking of the Steel Ministry to undertake complete construction of modern integrated steel plants. It executed works in steel plants right from the inception till commissioning at Bokaro, Vizag and Salem. It was associated with expansion and modernization activities of Bhillai, Durgapur and Bhadravati steel plants. It also carried modernization works at Indian Iron & Steel Company(IISCO), Burnpur. The Company has diversified its activities and entered into the power, coal, oil and gas sectors and infrastructural facilities like roads, highways, bridges, dams, underground communication and transport system.
At present about 80 per cent of the turnover of HSCL is coming from the non-steel sector and only 20 per cent is coming from the steel sector. The Company has got works worth Rs.130 crore in NTPC and works worth Rs.70 crore in Chennai by the efforts of the Steel Ministry. It has also got work of widening and construction of new roads in Bhopal.
The profit of the Company declined due to the lack of substantial activity in the steel sector . At the end of the year 1999 the accumulated loss of the Company stood at Rs.1383.28 crore. During the financial year 2000 the Government has sanctioned several financial assistance/exemptions which included waiver of outstanding interest on Government of India loan amounting Rs.957.81 crore. This has reduced the loss of the Company to Rs.531.55 crore.
The Government is making all efforts to improve the working of the Company. The customers are gaining confidence in the ability of HSCL to deliver the goods. It is expected that it would come round and generate net profits by 2003.