Govt okays disinvestment plan in Hindustan Organic Chemicals Ltd
Published: Jun 21, 2019
By TIOLCORPLAWS News Service
NEW DELHI, JUNE 21, 2019: THE Union Minister for Chemicals & Fertilizers, Mr DV Sadananda Gowda, today in Parliament stated that as part of the restructuring plan for M/s Hindustan Organic Chemicals Limited (HOCL) approved as on May 17, 2017, the Rasayani unit has been closed down and Kochi unit of HOCL is continuing operations. He also mentioned that no proposal had been received from Government of Kerala to take over the Kochi plant of HOCL.
The Minister stated that ‘in principle' approval has been accorded for strategic disinvestment of HOCL after the process of disposing unencumbered land and other assets at Rasayani is completed. The restructuring plan involves closing down the operations of all plants at Rasayani unit of HOCL except N 2 O 4 plant, which is transferred to ISRO on 'as is where is' basis. It also includes disposal of plant & machinery and other movable assets; giving VRS or VSS to employees at Rasayani; sale of 442 acres of land to BPCL; appointment of NBCC as LMA for disposal of balance encumbrance free land at Rasayani for discharging its liabilities.
For sick & loss-making PSUs like HOCL, the decision regarding future is taken by the Government based on the various factors including financial viability on case to case basis in consultation with other Departments such as the DPE, DIPAM & the NITI Aayog, Mr Gowda added.