Bengal to seek Centre's intervention in HSCL

The West Bengal government will seek Centr's intervention in some recent actions regarding the city-based PSU Hindustan Steelworks Construction Ltd (HSCL) by its parent NBCC India.

"I am 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," state Power Minister Sovandeb Chattopadhyay told PTI.

Chattopadhyay, who is also an INTTUC leader, 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 that would hurt the company's financials.

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 for liasoning with its parent NBCC and clients.

HSCL Contractual Employees Association has alleged that NBCC India is drying up cash reserves and transferring funds in order to wind up the HSCL.

"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) which is illogical and breach of agreement," the association's general secretary Joydeep Lahiri said in a statement.

The construction work of the proposed new corporate office of the HSCL in Kasba area in Kolkata is also not taking off till date, he said.

Watch Zee Business video here:

In April 2017, NBCC acquired HSCL as its subsidiary by holding 51 per cent of the equity shareholding. In December, the steel ministry agreed to transfer its entire 49 per cent stake in HSCL to housing and urban affairs ministry.