Cabinet backs CCEA's decision on closure of Tungabhadra Steel

New Delhi: The Union Cabinet, chaired on Wednesday, approved the implementation of the Cabinet Committee on Economic Affairs' (CCEA) decision on the closure of Tungabhadra Steel Products Limited (TSPL) regarding disposal of its immovable assets.

Headed by Prime Minister Narendra Modi, it also provided for getting the name of the company struck off from the Registrar of Companies after setting balance liabilities of TSPL.

The CCEA had approved the closure of the company in December 2015 after discharging all dues to employees/workers and creditors. The Cabinet then approved the transfer of metallurgical and material handling (MMH) plants to the Government of Karnataka, along with 20,000 square meter land.

The Cabinet also approved the sale of 82.37 acres of land of the company at Hospet to the Karnataka Government for utilisation by the Karnataka State Housing Board. The land is being sold to the state government at the rate of Rs. 66 lakh per acre offered by them.