Govt approves conversion of loan to HPL into equity

The government today approved the conversion of its Rs 128 crore loan to state-run Hindustan Prefab (HPL) into equity to help the company becoming a viable enterprise.      

"With this approval, the accumulated losses will be set off against equity, and the company is expected to emerge as a viable and profit-making Central Public Sector Enterprises in the coming years," Information and Broadcasting Minister Ambika Soni said after a Cabinet meeting here.      

The Cabinet approved conversion of the outstanding government's loan and interest on the firm till March 31, 2008 into equity.      

Soni said the authorised capital of HPL, a service oriented company, had increased from Rs 10 crore to Rs 138 crore.      

She said it was expected that HPL, while continuing with its existing activities, would also be in a position to re-start prefab manufacturing on its own, without seeking any financial assistance from the government.      

HPL now offers project management services, particularly in areas of economically weaker section, low income group housing, border and tribal areas and North Eastern states.