Case Study Of Hindustan Steelwork Construction Limited

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INTRODUCTION OF THE COMPANY Hindustan Steelwork Construction Limited (HSCL) was established in 1964 as a construction organization under the ministry of steel, government of India. it diversified into a versatile infrastructure portfolio all over the country .HSCL becomes the major player in implementation of integrated steel has been pioneer of infrastructure project in north eastern regions including projects under Bharat Nirman Programme of government of India. Now it is also an IOS 9001:2008 certified company. BASIC INFORMATION ABOUT THE HSCL FACT SHEET NAME OF THE COMPANY HINDUSTAN STEELWORK CONSTRUCTION LIMITED (HSCL) YEAR OF ESTABLISHMENT: 1964 FOUNDER OF HSCL MINISTRY OF STEEL, GOVERNMENT OF INDIA. LEGAL STATUS OF FIRM…show more content…
Many participants- These transactions frequently demand the participation of numerous international participants. It is not rare to find over ten parties playing major roles in implementing the project. The different roles played by participants are described in the section below. 3. Allocated risk- Many risks are present in such transactions, often the crucial element required to make the project go forward is the proper allocation of risk.. The goal of this process is to match risks and corresponding returns to the parties most capable of successfully managing them. For example, fixed-price, turnkey contracts for construction. 4. Costly- Raising capital through project finance is generally more costly than through typical corporate finance avenues. The greater need for information, monitoring and contractual agreements increases the transaction costs. Furthermore, it can reduce the liquidity of the project’s debt. Margins for project financings also often include premiums for country and political risks since so many of the projects are in relatively high risk countries. 5. Benefits of High Credit-Quality…show more content…
Government- The local government’s influence might include: approval of the project, control of the state company that sponsors the project, responsibility for operating and environmental licenses, tax holidays and industry regulations or policies. 2. Project owners- The sponsors are the generally the project owners with an equity stake in the project. 3. Project Company- The project company is a single-purpose entity created solely for the purpose of executing the project. 4. Contractor- The contractor is responsible for constructing the project to the technical specifications outlined in the contract with the project company. 5. Operator- Operators are responsible for maintaining the quality of the project’s assets and operating the power plant, pipeline, etc. at maximum efficiency. 6. Supplier- The supplier provides the critical input to the project. For a power plant, the supplier would be the fuel supplier. 7. Customer- The customer is the party who is willing to purchase the project’s output, whether the output be a product (electrical power, extracted minerals, etc.) 8. Banks- Commercial banks represent a primary source of funds for project financings. In arranging these large loans, the banks often form syndicates to sell-down their

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