Local Goa News

Sunday, October 9, 2016

EDC to sell GAAL’s assets for 7cr to HAL

Panaji: Hindustan Aeronautics Limited (HAL) is expected to finalize the purchase of Goa Auto Accessories Limited (GAAL) assets for 7 crore within a month’s time, EDC officials said. The unanimous decision to sell the assets of the now defunct GAAL for 7 crore to HAL was taken at the EDC board meeting, sources said.
HAL, along with its French partner Safran is expected to invest about 170 crore in a helicopter maintenance, repair and overhaul facility at Honda, Sattari on the plot that it will acquire from Goa Auto Accessories Limited (GAAL).

“The sale agreement will be signed within a short while. The shed and the plot will be sold for 7 crore on an as-is basis,” EDC chairman Sidharth Kunkalienkar said.
The Goa government had shut down the loss-making GAAL in March 2014 and put it on sale.
Given that GAAL, an EDC subsidiary, has been closed down, all decison regarding GAAL are taken by the EDC board of directors, an official said.
Another senior EDC official said that HAL and Safran would form a venture, with the government-owned PSU likely to own a controlling 50% stake in the Honda-based unit.
HAL and Safran will make an initial investment of 50 crore to set up the helicopter engine repair and overhaul unit.
Other officials said, the proposed facility would service military helicopter engines used in the country and foreign ones as well.
While HAL will purchase GAAL’s assets, the company itself will continue to remain as an EDC subsidiary till the current legal issues are resolved in court.
“There is litigation so only once that is settled will EDC wind up the company,” a senior EDC official said.

TOI Goa News

No comments:

Post a Comment