Question : HINDUSTAN CABLES LIMITED



(a) whether the Hindustan Cables Ltd., Allahabad, Uttar Pradesh is the only unit of Government of India which produce Fibre Optical Cables ;

(b) if so, the production of optical fibre during the last three years (year-wise) ;

(c) whether the Hindustan Cables Ltd. is on the verge of closure ;

(d) if so, the reasons therefor; and

(e) the action being taken by the Government to maintain production capacity of this institute?

Answer given by the minister


MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI SONTOSH MOHAN DEV)

(a) Yes, Sir.

(b) Details as asked for are as under:-



Year Production in Fibre Kilo Metre (FKM)

2001-02 6,498
2002-03 NIL
2003-04 NIL


(c) Production in Hindustan Cables Limited (HCL) is suspended since April,2003 except for two months from November end, 2003 when an order for supply of 10 Lakh Core Kilo Metre (LCKM) of Polyethylene Insulated Jelly Filled (PIJF) cable was received from Bharat Sanchar Nigam Limited. HCL is a sick company registered with Board for Industrial and Financial Reconstruction (BIFR) who have not taken decision in respect of HCL yet.

(d) Some of the main reasons for sickness include:

(i) High cost of production of telecom cable; and

(ii) Lack of orders in view of uncompetitive prices.

(e) While the Department of Telecommunications have been requested to place orders on HCL, the company has commissioned Indian Institute of Technology, Kharagpur for conducting a techno-economic study to establish HCL`s long term viability.