Hindustan Fluorocarbons to shut down operations

State-run Hindustan Fluorocarbons Ltd (HFL) on Wednesday said it will shut down its operations as per the directive from the government which will provide a Rs 77.2 crore interest-free loan to meet closure-related expenditure.

In a BSE filing, the Hyderabad-based company said it has been asked to repay the interest-free loan to the central government from the sale proceeds of land and other assets of the company.

A decision to shut down HFL was taken by the Cabinet Committee on Economic Affairs (CCEA), and the nodal Fertiliser and Chemicals Ministry has conveyed the same to the company recently.

In the letter, HFL said that the ministry has informed that interest-free loan of Rs 77.20 crore to be provided by the central government should be utilised exclusively for closure related expenditure.

The expenditure include implementation of VRS/VSS for HFL employees, payment of their outstanding salary and statutory dues, payment of suppliers/contractors/utilities dues and repayment of SBI working capital loan, it said.

It would also include salary/wages and administrative expenses of HFL's skeletal staff to be temporarily retained for completing the closure of HFL for two years. In case of retention of skeletal staff beyond two years, necessary budgetary support for the skeletal staff may be provided with the approval of the Ministry of Finance, it added.

For facilitating disposal of HFL's land, NBCC (India) Ltd will be appointed as Land Management Agency (LMA) to manage and assist in the land disposal subject to outcome of the decision of Telangana government on purchasing land of HFL.

The disposal of plant/machinery and movable assets will be done by HFL through e-auction by MSTC Ltd.

The terms of appointment of NBCC and MSTC Ltd and disposal of land will be done in accordance with the Department of Public Enterprises' revised guidelines on closure of CPSEs dated June 14, 2018, the company said quoting the ministry's letter.