The Cabinet on Wednesday cleared the transfer of administrative control of HPIL from the telecom ministry to the housing and urban development ministry after equity infusion of ₹700 crore and ₹51 crore secured loan into the company.
As a special purpose vehicle (SPV), HPIL is managing the transfer of surplus land from Tata Communications, formerly VSNL, to the government. The decision brings the about one-and-a-half-decade-old case in the final lap.
“The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the transfer of administrative control of Hemisphere Properties India Ltd (HPIL), PSU from the Department of Telecommunications (DoT) to the Ministry of Housing and Urban Affairs (MoHUA),” an official statement said.
The transfer will be executed after infusion of equity amounting to ₹700 crore and ₹51 crore secured loan from government into the company and implementation of scheme of arrangement for de-merger of surplus land, it said.
The government disinvested majority stake from VSNL, now Tata Communications, in February 2002 and passed on to the Strategic Partner, Panatone Finvest Ltd (PFL), an SPV under the Tata Groups of Companies.
