All is not well with HSL

[PARIKRAMA]

All is not well with HSL

The future of Hindustan Shipyard Limited hinges on decisions to be taken by the Ministry of Defence.

This was the first big industrial investment in Visakhapatnam after the port by distinguished industrialist Walchand Hirachand, who undeterred by the bombing of the town by Japan during World War II, went ahead with laying the stone for the yard by then acting president of Congress Rajendra Prasad on June 21, 1941.

Today a sense of betrayal prevails among the workforce, direct and indirect, involved in ship repairs and building as the MoD after shifting its administrative control from the Ministry of Shipping in February, 2010 has not honoured its promise of placing orders on nomination.

Ironically, all the defence yards got high value orders denying the same to HSL pushing it into a deep financial crisis.

Highly reliable sources told The Hindu that compared to other shipyards, HSL is struggling for existence through hard work by taking up various difficult ship repair and other orders. While HSL order book is said to be not more than Rs.1500 crore, Mazagon Dock Limited has around Rs.75,000 crore and Garden Reach Shipbuilders & Engineers Ltd Rs.25,000 crore.

Big blow
Moreover, cyclone Hudhud came as a big blow causing an estimated loss of around Rs.500 crore. Noteworthy to mention here that despite the devastating effect of Hudhud, HSL kept its commitment by floating out INS Sindhukirti, the Sindhughosh class submarine, on time.

Referring to the present crisis, Defence Minister Manohar Parrikar, in a letter dated November 28 to MP and CITU general secretary Tapan Sen stated that HSL was not in a position to pay arrears to its employees on account of wage revision due to precarious financial position.

As part of improving its brand image and financial credibility, HSL management has signed MoU with Hyundai of Korea for cooperation and joined a consortium with BHEL and MIDHANI to compete for P-75 (1) submarine construction under ‘Make in India’ programme involving Rs.60,000-crore investment.

It is felt that placing submarine orders and clearing Fresh Financial Restructuring worth Rs.1132 crore will go a long way in putting HSL back on track.

A sense of betrayal prevails among the workforce as the MoD, after shifting its administrative control, has not honoured its promise of placing orders on nomination.

All is not well with HSL - The Hindu

 

[holysaturn]

If they feel they have done difficult work and pulled off then why ask for nomination,Compete and win the tender, HSL employees are not entitled to payed salaries by the tax payers money.
Lack of competition,accountability has robbed this country long enough, the government has been supporting HSL from the time it was transferred to the MOD, for 50 years,even after that if it says it still needs the hand holding of the government then its credibility is in question. Make the DPSU's independent financially,let them take care of salaries from their incomes instead of the MOD paying the revenue expenses, that's the way chinese state owned enterprises like NORINCO work and that's how DPSU's should also work.

 

[satishkumarcsc]

Taking out quota system is the the way ahead for this country.

 

[kaku1]

All is not well with HSL

The future of Hindustan Shipyard Limited hinges on decisions to be taken by the Ministry of Defence.

This was the first big industrial investment in Visakhapatnam after the port by distinguished industrialist Walchand Hirachand, who undeterred by the bombing of the town by Japan during World War II, went ahead with laying the stone for the yard by then acting president of Congress Rajendra Prasad on June 21, 1941.

Today a sense of betrayal prevails among the workforce, direct and indirect, involved in ship repairs and building as the MoD after shifting its administrative control from the Ministry of Shipping in February, 2010 has not honoured its promise of placing orders on nomination.

Ironically, all the defence yards got high value orders denying the same to HSL pushing it into a deep financial crisis.

Highly reliable sources told The Hindu that compared to other shipyards, HSL is struggling for existence through hard work by taking up various difficult ship repair and other orders. While HSL order book is said to be not more than Rs.1500 crore, Mazagon Dock Limited has around Rs.75,000 crore and Garden Reach Shipbuilders & Engineers Ltd Rs.25,000 crore.

Big blow
Moreover, cyclone Hudhud came as a big blow causing an estimated loss of around Rs.500 crore. Noteworthy to mention here that despite the devastating effect of Hudhud, HSL kept its commitment by floating out INS Sindhukirti, the Sindhughosh class submarine, on time.

Referring to the present crisis, Defence Minister Manohar Parrikar, in a letter dated November 28 to MP and CITU general secretary Tapan Sen stated that HSL was not in a position to pay arrears to its employees on account of wage revision due to precarious financial position.

As part of improving its brand image and financial credibility, HSL management has signed MoU with Hyundai of Korea for cooperation and joined a consortium with BHEL and MIDHANI to compete for P-75 (1) submarine construction under ‘Make in India’ programme involving Rs.60,000-crore investment.

It is felt that placing submarine orders and clearing Fresh Financial Restructuring worth Rs.1132 crore will go a long way in putting HSL back on track.

A sense of betrayal prevails among the workforce as the MoD, after shifting its administrative control, has not honoured its promise of placing orders on nomination.

All is not well with HSL - The Hindu

Why not sell the HSL as disinvestment policy to L&T?

 

[PARIKRAMA]

Spinning off DPSU, Listing them in bourses or selling the loss making BIFR units outright seems a good way forward. Balco Nalco was divested then why not HSL. No point supporting HSL at present form

 

[Tshering22]

HSL should be listed and be answerable to public money.

Or simply sold off to L&T or Pipavav Ltd.

Enough of doleouts.