Parliamentary panel opposed disinvestment of HOCL

New Delhi: A Parliamentary panel unanimously opposed the proposal of the Central Government to disinvest Miniratna Hindustan Organic Chemicals Limited, which plays a crucial role in building strategic assets of the country.

Tabled in the last monsoon session of Parliament, the standing committee of the ministry of Chemical and Fertiliser noted with deep concern that HOCL company, which once was declared a miniratna company and made regular profits for 31 years up to 1996-97, has tragically come to the point where the Government actually considered restructuring it by closing down nine of its twelve plants in Rasayani.

The committee also noted that earlier efforts to revive HOCL by the Government had failed miserably. The report says that these revival efforts failed because they lacked focus and expertise.

The committee found that even the current Draft Cabinet note of April 2016 on revival was not supported by the Department of Expenditure and Department of the Public enterprise as the proposal in its current form did not appear to have adequate focus on long-term commercial viability and lacked an actual business plan to increase revenue, control cost or overcome the reasons of failure of the revival of an earlier package.

It is important to note that subsidiary of HOCL , Hindusthan Fluorocarbon limited is engaged in manufacturing of Poly Tetra Fluro Ethylene and Chloro Di Fluro Methane, which is extensively used in chemical, mechanical, electronic and electric industries and has strategic applications in defence and aerospace sectors.

Though Prime Minister Narendra Modi is emphasising on the make in India programme, the government is closing down industries which have importance in strategic affairs. Ultimately it will pave the path for massive import for our strategic sectors.

The standing committee asked the department to come up with a fresh revival package and report back to the committee at the earliest.

Interestingly, the committee has looked at the reasons behind the downfall of this miniratna and came to the conclusion that the post-1990's liberalised and globalised economic scenario was responsible for the present situation of the company.

It was the inability of the company management to adapt to the changes, which ultimately led to its downfall.