MOU BETWEEN HSL AND MOS

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A Memorandum of Understanding was signed between Hindustan Shipyard Ltd., Visakhapatnam and Ministry of Shipping, Government of India for the year 2003-04 with a mission to operate a strong and efficient shipbuilding, ship repairs and Retrofitting of Submarines to meet the growing requirements of Mercantile Marine, Oil and Defence sectors. The MOU with objectives to explore new shipbuilding orders from indigenous and export market, to make efforts for ship repair facilities, rationalization of manpower etc. fixes a target of Rs.110 crore for ship repair & Retrofitting business for the year 2003-04.

The Ministry of Shipping on its part will provide assistance to the extent of securing fresh orders for shipbuilding, retrofitting of submarine and off-shore platform construction orders and maintenance activities from ONGC. The Government will also support HSL for early clearance/approval of Capital Restructuring Proposal including assistance towards working capital of Rs.47.38 crore and MAT liability of Rs.39.03 crore and interest on MAT Rs.23.90 crore. As for long term assistance it is on record that the Ministry would consider to provide adequate funds for upgradation of technology and development of human resources. In fine, HSL would furnish the Ministry the progress of performance on quarterly basis for scrutiny and review by the Government.