The recent Cabinet decision that requires government agencies to pay 75 per cent of arbitral awards will result in HCC’s debt being reduced by half. HCC has arbitration awards for over Rs 3,200 crore, and with the cabinet decision, the company will get 75 per cent of this amount immediately. Similarly, claims worth around Rs 5,000 crore are in arbitration process. The cabinet decision will further help HCC to secure these awards within a duration of 12 months.
In view of this, Ajit Gulabchand, Chairman and Managing Director, HCC, shares, “We are pleased with the Cabinet’s decision on payment of arbitration awards to infrastructure companies. HCC will immediately be able to reduce its debt by almost half as a result, and within 12 to 24 months, materially reduce it even further. With this, HCC will be able to participate in the country’s infrastructure development in a much bigger way.”
HCC has a standalone debt of Rs 4,900 crore. The Cabinet decision will help the company to substantially reduce this amount.