Steel Ministry today submitted Kolkata-based Hindustan Steel Works Construction's (HSCL) Rs 1,440 crore financial

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restructuring plan before the Cabinet Committee on Economic Affairs (CCEA).

"The note has been submitted for CCEA considerations today. It was already approved by different ministries," a source in the ministry told PTI.

The restructuring plan of the state-run firm, which is in the business of construction of steel plant and building of infrastructure, including dams, bridges, roads and others, has already been cleared by the Finance Ministry.

Post-restructuring, the paid-up share capital of the firm would rise to Rs 700 crore from Rs 171 crore now, he said.

The turnover of the company, which is sitting on a Rs 2,043 crore order book and has emerged L1 bidder for an additional Rs 1,320 crore order, is also expected to go up to Rs 2,400 crore by 2020 from Rs 1,000 crore recorded in the last fiscal, following the restructuring.

"From the present loss-making situation, HSCL will start generating net profit immediately after restructuring and in FY20, the net profit will reach Rs 137 crore," he said.

The restructuring plan of the company has been prepared consisting of re-scheduling of bank loans, conversion of government loans into equity, waiver of outstanding interest and government guarantee fee, etc.

"The most significant part of the restructuring proposal is that it does not involve any cash infusion by the government," the source said.

Following the restructuring, HSCL's net worth would be positive and it would be able to participate in high value projects.