Shutters down for Hindustan Cables; Land to put on auction

The curtains have finally fallen on Hindustan Cables factory in Hyderabad on Wednesday as the government mandated NBCC (India) Ltd to auction the sick PSU’s land at nine locations, including that of at Cherlapally.

“The government has taken a decision to utilise land parcels of sick PSUs. We are inviting expression of interest (EOIs) from central government departments and CPSEs as well as state government departments and state PSUs to purchase land and other immovable properties of these five companies — Hindustan Cables Ltd, Instrumentation Ltd, HMT Bearing Ltd, HMT Watches Ltd and Tungabhadra Steel

We are inviting EOIs from central government departments and CPSEs as well as state government departments and PSUs to purchase land and immovable properties — A.K. MITTAL

MD, NCBCC

Products,” said NBCC chairman and MD Anoop Kumar Mittal.

Two properties of these five companies are in Hyderabad — 324 acres of Hindustan Cables at Cherlapally and 29.33 acres of HMT Bearings Ltd at Maula Ali IDA.

Hindustan Cables was set up in 1974 to manufacture telecommunication cables exclusively for the BSNL. It was inaugurated by then Prime Minister Indira Gandhi. However, the firm turned sick as its products turned obsolete due to mobile telecom technology.

Though there were reports of Ordinance Factory suggesting its interest in taking over the assets of Hindustan Cables and along with its employees in 2013, the central government has decided to close Hindustan Cables by offering golden handshake to its employees and taking over its liabilities, which were over `4,000 crore.

NBCC had said that it will, in consultation with CPSE concerned, prepare development plan of each land parcel and invite EOIs and offer for purchase of land at the prevailing circle rate/acquisition cost from all government entities.