Hindustan Construction Reduces Corporate Guarantee by 3364 Crore

Hindustan Construction Company Ltd (HCC) has announced a reduction of approximately 3364 crore in its corporate guarantee to Prolific Resolution Private Limited (PRPL). This development is part of the company’s ongoing efforts to restructure its financial obligations. The announcement was made on December 11, 2025.

In September 2022, HCC entered into a debt restructuring agreement with its lenders. As part of this agreement, HCC transferred approximately 2854 crore of debt and 6508 crore of awards and claims to PRPL, while retaining a 49% equity stake in the company. Initially, HCC had provided a corporate guarantee for 100% of PRPL’s debt.

The company has now informed PRPL that its corporate guarantee obligation has been reduced from 100% of the outstanding amount to approximately 571 crore. This represents 20% of the principal amount transferred. The reduction follows approvals from PRPL’s lenders, its board, and other stakeholders. The necessary exchange approval formalities are currently in progress.

The revised guarantee framework has been executed in coordination with lending institutions and complies with applicable regulatory, legal, and governance requirements. This adjustment is part of HCC’s strategy to de-leverage its balance sheet and improve its investment-grade rating.

Hindustan Construction Company Ltd is focused on developing and building responsible infrastructure. With nearly 100 years of engineering heritage, HCC has executed significant infrastructure projects in India, including hydro and nuclear power generation capacities, expressways, highways, tunneling, and bridges. The company serves the infrastructure sectors of transportation, power, and water.