New Delhi, Aug.20 (ANI): The Union Cabinet today approved the conversion of Hindustan Prefab Limited (HPL)'s outstanding Government of India loan and interest thereon as on 31.03.2008 amounting to Rs.128 core into equity thereby increasing the authorised capital of HPL from the existing Rs.10 crore to Rs.138 crore.
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.
It is also expected that the Company, while continuing with its existing activities, will also be in a position to re-start prefab manufacturing on its own, without seeking any financial assistance from the Government.
HPL is a Central Public Sector Enterprises under the administrative control of the Ministry of Housing and Urban Poverty Alleviation. It was initially set up in 1950 as Hindustan Housing Factory, primarily to provide prefab houses using lightweight concrete panels for displaced persons from West Pakistan after Partition.
HPL is now functioning as a service oriented company offering project management services particularly in areas of Economically Weaker Section (EWS)/Low Income Group (LIG) Housing, North Eastern States, border areas, tribal areas etc. (ANI)