Good news for HMT employees as Centre approves Rs 77 cr revival package for the PSU

IN A move that will bring smiles to the faces of thousands of employees of the beleagured PSU HMT, the Central government has sanctioned budgetary allocation for payment of salary and wages and statutory dues to the employees of HMT Ltd, Bangalore and its subsidiary...
HMT Machine Tools Ltd Bangalore. This was stated in a press release on Thursday.
"The Cabinet Committee on Economic Affairs (CCEA) has approved budgetary support, in the form of Non-Plan loan of Rs 27.06 crore for payment of salary and wages and statutory dues to the employees of HMT Limited for the period from March, 2013 to September, 2013. The CCEA has also approved Rs.50.34 crore to HMT Machine Tools Limited for payment of statutory dues (Provident Fund, Gratuity etc.) for the period from September, 2012 to March, 2013," the statement added.
HMT Limited and HMT Machine Tools Limited, a subsidiary of HMT Limited, are CPSE under the administrative control of the ministry of heavy industry.
"This decision would mitigate hardships being faced by employees and would also motivate employees and help to achieve the goal of revival/restructuring of the companies," the statement added.
The work force of the company as on October 31, 2013 was 1439. The company had authorised share capital of Rs 2,100 crore, paid up equity share capital of Rs 760.35 crore and paid up preference share capital of Rs 443 crore as on March 31, 2013.
Hindustan Machine Tools Ltd was established in 1953 for production of machine tools initially. It was renamed as HMT Ltd in 1978 in view of its diversified status and multi-technology products. The work force of the company as on October 31, 2013 was 1439. The company had authorised share capital of Rs. 2100 crore and paid up equity share capital of Rs. 760.35 crore and paid up preference share capital of Rs.443 crore as on March 31, 2013.
Today, HMT comprises five subsidiaries under the ambit of a holding company, which also manages the tractors business directly.
In a bid to revive the sick PSUs, the government on December 26 last year provided Rs 116.86 crore to 11 sick public sector units (PSUs), including HMT Machine Tools, towards payment of wages and other dues. The decision to provide funds to the PSUs was taken by the Cabinet Committee on Economic Affairs (CCEA). The PSUs which would get the funds were Hindustan Cables, HMT Machine Tools, HMT (Watches), HMT (Chinar Watches), Nagaland Pulp & Paper, Triveni Structurals, Tungbhadra Steel Products, Nepa Ltd, HMT Bearings, Hindustan Photo Films and Tyre Corporation of India.