The Cabinet Committee on Economic Affairs on January 22, 2020 approved shutting down the operations of the plant/unit of Hindustan Fluorocarbons Limited(HFL) and closure of the company.
HFL has only one plant/unit located at Rudraram, District Sangareddy in Telangana.
Causes of closure
With unviable scale of operations, very old plants & technology and only one revenue earning product (HCFC-22) but of no strategic significance, sustainable revival of HFL is not economically viable. Moreover, the inevitable reduction in HCFC-22 quota of HFL in 2020 will make the company’s operations completely non-viable from March, 2020 onwards. Closure of the company’s operations will not only avoid any future risks / liabilities but also protect the interest and welfare of HFL employees by separating them through VRS/VSS. Thereafter, disposal of the company’s land assets will enable their redeployment for more productive use which can attract both domestic and foreign investments.
About Hindustan Fluorocarbons Limited (HFL)
- Hindustan Fluorocarbons Limited (HFL) is a subsidiary company of Hindustan Organic Chemicals Ltd. (HOCL), a Central Public Sector Enterprise (CPSE) under the administrative control of the Department of Chemicals and Petrochemicals.
- HFL is engaged in the manufacture of Poly Tetra Fluoro Ethylene (PTFF) and Chloro Di Fluoro Methane (HCFC-22 or CFM-22).
- The company has been making losses since 2013-14 and has negative net worth. As on 31.3.2019, it had accumulated losses of Rs.62.81 crore and negative net worth of (-)Rs.43.20 crore. It was also registered with the erstwhile Board for Industrial and Financial Construction (BIFR) as a sick company.
