West Bengal to seek Center's intervention in HSCL case
What's the story
The West Bengal government will seek Center's intervention in some recent actions regarding Kolkata-based PSU, Hindustan Steelworks Construction Ltd (HSCL), by its parent NBCC India. In April 2017, NBCC acquired HSCL as its subsidiary by holding 51% of the equity shareholding. In December, the Steel Ministry agreed to transfer its entire 49% stake in HSCL to Housing and Urban Affairs Ministry. Here's more.
Protecting company
Seeking intervention for the protection of the company: Chattopadhyay
Explaining the need for intervention, State Power Minister Sovandeb Chattopadhyay said, "I'm in the process of sending a letter to the Union Housing and Urban Affairs Minister seeking his intervention in protecting this company from getting virtually shifted and preventing job losses of the 478 contractual employees." Chattopadhyay is also an Indian National Trinamool Trade Union Congress (INTTUC) leader.
Allegations
HSCL was not implementing the signed agreements: State Power Minister
Chattopadhyay alleged that the HSCL was not implementing the agreements signed with the Union recently and was now engaged in unproductive expenses worth Rs. 43 crore in buying unnecessary property. HSCL Managing Director Neelesh Shah dismissed the allegations and said the company had acquired the property to expand operations as it required better infrastructure in Delhi to liaison with its parent NBCC and clients.
Information
Employees' Association alleges NBCC is winding up HSCL from WB
HSCL Contractual Employees' Association has alleged that NBCC India is drying up cash reserves and transferring funds in order to wind up the HSCL.
Transfer of funds
Transfer of funds is breach of the agreement: Employees' Association
The Association's General Secretary Joydeep Lahiri said in a statement, "Though HSCL already has a full-fledged functioning regional office in Delhi at Scope Minar, Laxminagar, NBCC has transferred HSCLs fund of Rs. 43 crore into its account by purchasing an office space for HSCL in Delhi (a property of NBCC)." "It is illogical and breach of the agreement," said Lahiri.