The Telegraph reported that India government is drawing up a fresh package for Heavy Engineering Corporation Limited to pave the way for increasing the retirement age of employees from 58 year to 60 year and ensure flow of working capital to help execute its burgeoning work orders.

Sources said that Heavy Engineering Corporation has been circulated to a group of secretaries in the finance and labor departments for comments. Once received, it would be incorporated into the main proposal to the union finance minister for his final concurrence before it is placed before the cabinet.

The development comes at a time when the centre has permitted raising the retirement age of Heavy Engineering Corporation directors from 62 year to 65 year, so that capable and even retired PSU executives can be on the board.

Insiders revealed that the package being drafted included a proposal to waive all interest payments on an INR 102 crore bridge loan granted by the centre in 2007 and hike the existing cash credit limit with State Bank of India from INR 150 crore to INR 253 crore.

With HEC’s overall work order valued at over INR 6,000 crore, between March and April 2008 it had bagged orders worth INR 2,508 crore from various SAIL plants. On February 1st 2008, HEC bagged a work order from Bhilai Steel worth over INR 200 crore for augmentation of an ore handling plant and on February 29th 2008, another order for coal handling plant worth INR 500 crore.