HSL asks for financial package

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Hindustan Shipyard Ltd (HSL) has sent a proposal to the central government for financial restructuring, according to LV Sarat Babu, Chairman and Managing Director.

Even though the public sector shipyard’s performance has been satisfactory in recent times, it is burdened with accumulated losses and is, therefore, finding itself in a tight spot.

Babu said the negative worth of the company had been reduced through sustained efforts. “Once the restructuring package is sanctioned, our negative net worth will go,” he said.

The present order book value of the shipyard is Rs. 320 crore due to which the company is functioning at 48 percent of its installed capacity.

He said the management was trying to persuade the Ministry of Defence to nominate HSL for construction of three cadet training ships, nine 25-tonne bollards pull tugs for the Navy and eight inshore patrol vessels for Indian Coast Guard.

HSL has also urged the MoD to assign major refit and life certification (MRLC) of third EKM submarine keeping in view its proven record in retrofitting of submarines.

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