Cabinet approves closure of Tungabhadra Steel Products

Business News, State, (New Delhi), January 11:-The Cabinet on Wednesday approved the implementation of an earlier Cabinet Committee on Economic Affairs (CCEA) decision on closure of Tungabhadra Steel Products Ltd (TSPL) regarding disposal of its immovable assets, an official statement said.

The development also provides for getting the name of TSPL removed from the Registrar of Companies after setting balance liabilities of the company.

The CCEA had in December, 2015 approved the closure of the company after discharging all dues to employees and creditors.

TSPL was established in 1960 with equal equity participation of governments of Mysore and Andhra Pradesh.

The Cabinet, chaired by Prime Minister Narendra Modi, also cleared a proposal to transfer metallurgical and material handling plants to Karnataka along with 20,000 square meter land.

“It also approved selling 82.37 acres of land of the company at Hospet to Karnataka Government for use of the Karnataka State Housing Board. The land is being sold to Karnataka Government at the rate of Rs 66 lakh per acre offered by them,” the statement by Ministry of Heavy Industries and Public Enterprises said.

TSPL is a successor to Work shops & Machinery Division (1948) of Tungabhadra Project, which was set up with an idea to undertake manufacture of gates and hoists required for spillways, sluices and canal gates of Tungabhadra dam.

The Centre invested 79 per cent of the shares and became a major shareholder, bringing the company under the administrative control of Ministry of Heavy Industry.

-(NAV, Inputs: Agencies)

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