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No green nod to HCC’s Lavasa project; Maintain Neutral
The Environment Ministry has said it can grant clearance to Lavasa (65% subsidiary of
HCC) only after all the five pre-conditions (credible action by state government for
violations of environmental laws, written commitment accepting responsibility for
violations, ensuring that violations do not recur, setting aside 5% of the TPC for approved
CSR activities and endowing funds to Environmental Restoration Fund) are adhered to and
after the final orders of the Bombay High Court. But since the credible action from the state
government is pending, the ministry cannot issue clearance to the project. This decision is
a set back to HCC, which is desperate to bring things back to normalcy. The company is
suffering losses on account of stoppage of construction work since November last year and
plans of raising capital look a distant dream. We have been citing these concerns in our
previous notes and avoided the stock in spite of reasonable valuations. We continue to
maintain our Neutral view on the stock and would wait for further clarity on the future of
this project, as it would weigh heavily on the performance of HCC’s stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
No green nod to HCC’s Lavasa project; Maintain Neutral
The Environment Ministry has said it can grant clearance to Lavasa (65% subsidiary of
HCC) only after all the five pre-conditions (credible action by state government for
violations of environmental laws, written commitment accepting responsibility for
violations, ensuring that violations do not recur, setting aside 5% of the TPC for approved
CSR activities and endowing funds to Environmental Restoration Fund) are adhered to and
after the final orders of the Bombay High Court. But since the credible action from the state
government is pending, the ministry cannot issue clearance to the project. This decision is
a set back to HCC, which is desperate to bring things back to normalcy. The company is
suffering losses on account of stoppage of construction work since November last year and
plans of raising capital look a distant dream. We have been citing these concerns in our
previous notes and avoided the stock in spite of reasonable valuations. We continue to
maintain our Neutral view on the stock and would wait for further clarity on the future of
this project, as it would weigh heavily on the performance of HCC’s stock.
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