Steel ministry today agreed to transfer its entire 49 per cent stake in Hindustan Steelworks Construction Ltd (HSCL) to housing and urban affairs ministry.
The move will pave way for state-owned construction firm NBCC India Ltd to take full control of its subsidiary HSCL.
The Cabinet had last year approved the financial restructuring of state-run HSCL and its takeover by NBCC.
In April this year, NBCC acquired HSCL as its subsidiary by holding 51 per cent of the equity shareholding.
Consequent upon taking over of HSCL by NBCC, the Steel Ministry would transfer its 49 per cent HSCL shareholding to Ministry of Housing and Urban Affairs (MoHUA), NBCC said in a statement.
A quadripartite agreement to this effect was signed today among steel ministry, Housing and Urban Affairs Ministry, NBCC and HSCL, "facilitating NBCC to have complete control over financial, administrative and operating decisions of HSCL".
After transfer of 49 per cent stake, the Board of HSCL would be reconstituted. There would be re-designation of the post of CMD, HSCL as Managing Director and CMD of NBCC would be the chairman on the board of HSCL.
In presence of Steel Minister Chaudhary Birender Singh and Housing and Urban Affairs Minister Hardeep Singh Puri, the agreement was signed by and among Steel Secretary Aruna Sharma, Secretary MoHUA D S Mishra, NBCC's CMD Anoop Kumar Mittal and HSCL's CMD M Bhaduri.
In April this year, HSCL's board allotted Rs 35.7 crore equity share capital, i.e. 3.57 crore equity share of Rs 10 each, constituting 51 per cent of HSCL's post issued share capital to NBCC.
As a result, HSCL became a subsidiary of NBCC.