Union Cabinet approves Closure of Hindustan Cables Limited
The Union Cabinet has given its approval for closure of Hindustan Cables Limited (HCL), Kolkata as per the provisions of Companies Act, 1956/2013 and other relevant Acts.
Besides, Cabinet also approved infusion of 4,777.05 crore rupees towards payment of salaries and conversion of loan into equity etc.
The employees of HCL will be offered attractive VRS/ VSS Package at notional 2007 pay scales. The assets of company will be disposed in terms of the guidelines of Department of Public Enterprises on time bound closure of sick or loss making CPSEs.
Background
- HCL was established in the year 1952 with registered office located at Kolkata.
- It was set up to cater to the needs of Government-owned telecom companies BSNL and MTNL for manufacture of telecom cables.
- It had four manufacturing units at Rupnarainpur (West Bengal), Naini (Uttar Pradesh), Hyderabad (Telengana) and Narendrapur (West Bengal).
- The company was not able to cope up with changing time as due to rapid change in telecommunication technology (wire-line to wireless) demand for telecom cables has been drastically reduced.
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Month: Current Affairs - September, 2016