Cabinet approves sale of part of HAL surplus, vacant land

The Union Cabinet, chaired by the Prime Minister Narendra Modi, on Wednesday approved the sale of part of surplus and vacant land at Pimpri in Pune, Maharashtra for meeting the liabilities of Hindustan Anti-biotics Ltd. (HAL).

The proposal entails:

Sale of surplus and vacant land of about 87.70 acres of HAL (actual area of land to be sold would depend upon the rates received in bids, as per guidelines of BIFR) to meet the net liabilities of Rs. 821.17 crore after waiver and deferment, through an open competitive bid from Central /State Government Departments, Govt. Agencies, Central/State PSUs, Autonomous Bodies, Urban Development Authorities etc.

Waivers of Govt. of India loans and interest amounting to Rs. 307.23 crores (principal amount of Rs. 186.96 crore and interest approximately Rs. 120.27 crore thereon calculated as on 30.9.2017) and deferment of various dues amounting to Rs. 128.68 crores.

Sanction of an immediate loan of Rs. 100 crore to meet the wages, salaries and other critical expenses of immediate nature. The loan will be repaid to the Government from sale proceeds of the HAL land.

The approval will help the Government in optimum utilization of the Company's assets and to take further decisions in respect of the Company for:

(i) Rehabilitation;

(ii) Strategic Sale; or

(iii) Closure

On implementation of the scheme/proposal, HAL will be lean with no liabilities and clean balance-sheet, so that the implementation of recommendations of the Ministers' Committee is facilitated.

Sale of HAL land at Pimpri in Pune, Maharashtra will facilitate mitigation of sufferings and critical condition of the employees and if the liabilities are met and the balance sheet is cleaned, the implementation of recommendations of the Ministers' Committee will be facilitated.