Dear Sri. Ananth Kumarji,
Hindustan Organic Chemicals Ltd (HOCL) has a unit in Kerala, which produces Phenol, Acetone and Hydrogen Peroxide. Consequent to the decision to exempt import duty for Phenol and Acetone in 2012 the Kochi unit became a loss making one. It may be noted that, the Kochi unit started functioning since 1987 and has been consistently making profits till the above import duty exemption.
After a number of representations, import duty was re-introduced on Phenol and Acetone and presently the Kochi unit is in a position to function on a profitable basis. However, the main unit of HOCL in Maharashtra has been making a huge loss over a period of time and the net worth of HOCL became negative resulting in the company being referred to BIFR. In an initiative led by Prime Minister’s office on 3rd March, 2016 a revival package of HOCL was formulated. However, in the BIFR hearing on 21st July, 2016, Government of India has informed that HOCL will be closed down and wound up.
Considering the fact that, Kochi unit of HOCL can run in a profitable manner, it is requested that, this decision to wind up HOCL may be reviewed and Kochi unit of HOCL may be allowed to continue as a stand alone unit.
With warm regards,
Shri. Ananth Kumar
Minister for Chemicals & Fertilisers
Department of Chemicals & Petrochemicals
344, A-Wing, 3rd Floor