Government announces Rs 777 cr rehabilitation package for HDPEL

NEW DELHI: The government on Thursday announced a little less than Rs 777 crore rehabilitation and restructuring package for one of the oldest shipyards of the country, Hooghly Dock & Port Engineers Ltd ( HDPEL).

"Apart from socio-economic impact, it ensures viability of the company followed by revenue earnings to the Government of India," Information and Broadcasting Minister Ambika Soni told reporters here after the Cabinet meeting.

As a part of the package, the government would write off loan and interest amounting to Rs 628.86 crore and Rs 111.08 crore Grants-in-Aid.

The Cabinet also gave in-principle nod to the Kolkata- based firm for forming a joint venture with a private company, which would be selected through an open bidding process.

"The Cabinet has also approved Grants-in-Aid assistance of Rs 21 crore for implementing VRS, Government of India loan of Rs 16 crore for working capital and non-plan assistance for salaries and wages of employees till the formation of joint venture," Soni said.

HDPEL was established in 1819 in private sector. The Government of India nationalised the company in 1984. It is now under the administrative control of the Shipping Ministry. The company has two units in Howrah.