Jharkhand waives Rs.8 bn for Heavy Engineering

Dec 15, 2007, 9:41 GMT

Ranchi, Dec 15 (IANS) The Jharkhand government has cleared a Rs.8.06 billion package for Heavy Engineering Corporation (HEC) to revive the ailing public sector company.

The HEC package was cleared by the state cabinet Friday night. The package includes waiving of Rs.5 billion as electricity bill to Jharkhand State Electricity Board (JSEB). The government will release the amount in different phases.

The package also includes Rs.1.7 billion for revive the company, Rs.600 million for renovating government buildings, Rs.200 million for developing the land, waiver of water tax Rs.310 million, commercial tax of around Rs. 250 million among other things.

The HEC will donate 2,342 acres of unoccupied land to the state government. The government's move has brought cheers to the employees and management.

'It will help the HEC in many ways such as in the modernisation of the company, clearing outstanding payments of retire employees etc. The amount will be used to restructure the company,' HEC Chairman and Managing Director G.K. Pillai said.

After announcing the package, Chief Minister Madhu Koda said, 'We hope the good days of HEC will return soon and the company will emerge profitable.'

HEC was established in 1963. Two years ago the Board of Industrial & Financial Reconstruction (BFIR) had recommended the closing down of the company. The government was against this decision and had requested the government to revive the ailing company.

HEC was a dream project of India's first prime minister Jawaharlal Nehru. Last year the company posted a net profit of Rs.28.4 million.

In the first six months of the current financial year, the company crossed the sale target of Rs. 1.72 billion.

© 2007 Indo-Asian News Service