A shareholding agreement (SHA) was signed on Friday by which shares of Hindustan Steel Works Construction Ltd (HSCL), under the Steel Ministry, have been transferred to the National Building Construction Corporation (NBCC), under the Ministry of Housing and Urban Affairs.

The agreement was signed in the presence of Minister of Housing and Urban Affairs Hardeep Singh Puri and Minister of Steel Chaudhary Birender Singh.

After the signing ceremony, Puri said: “The synergy would strengthen both the companies which have similar lines of business activity in achieving economies of scale for NBCC and would assist in better manpower optimisation.”

The HSCL board would be reconstituted and a CMD or a representative of NBCC would be appointed its non-executive Chairman.

By investing ₹35.70 crore, NBCC has acquired 51 per cent of the share capital of HSCL, which has become a subsidiary of NBCC with effect from January 4, 2017.

Also, the administrative control of HSCL would change from the Ministry of Steel to the Ministry of Housing and Urban Affairs.