The modernisation and expansion plan will be funded by a mix of internal resources raised through excess land monetization and debt, the company said.
"We are waiting to get government approval to kickstart the capex plan. We don't foresee any major delay as we are not seeking any government financial assistance," HEC chairman and managing director Avijit Ghosh told PTI in an interview.
HEC has altered the original turnaround plan submitted by state-owned consulting firm Mecon in 2014. HEC shifted the focus on defence and nuclear energy sector as new strategic focus areas to become a strategic partner for the country in supporting 'make in India' effort taken by the Centre.
"We have modified the plan internally and got the same corroborated by the global consultant Ernst and Young before submitting it to the Heavy Industries ministry,"Ghosh said.
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"Due to various constraints like massive manpower and lack of working capital, it is unable to grow its revenue from around Rs 400 crore which is the main reason for losses. With cost minimization and other efficiency efforts had reduced losses from Rs 240 crore in 2015 to Rs 80 crore leve," Ghosh pointed out.
The turnaround roadmap is of five years by when it has forecasted Rs 1,640 crore revenue.
"Presently, we are an almost debt-free company. We may raise some bank funding but that would depend on cash flow from land monetization and cash flow from other operation," Ghosh said.