<p>The Centre on Thursday approved closure of loss-making tractor division of HMT at Pinjore and sanctioned Rs 718.72 crore for payment of outstanding salaries and other dues at the public sector entity.<br /><br /></p>.<p>The Union Cabinet, chaired by Prime Minister Narendra Modi, also gave its approval to transfer of select small parcels of HMT land at Bengaluru and Kochi to different government entities for their use in larger public interest.<br /><br />“The cabinet has approved the budgetary support to HMT for payment of outstanding salary / wages and other employee-related dues. It also approved closure of HMT Tractor division by offering attractive VRS / VSS at 2007 notional pay scales”, said a statement.<br /><br />“The decision will have a financial implication (cash outgo) of Rs 718.72 crore for payment of outstanding salary, wages and statutory dues, VRS/VSS ex-gratia payments and clearing of tractor division’s liabilities towards Bank and creditors.<br />The Cabinet has also given its approval for transfer of selected small parcels of HMT land at Bengaluru and Kochi to different government entities for their use in larger public interest”, said the statement.<br /><br />Machine tool start<br /><br />Aimed at producing machine tools required for building an industrial edifice for the country, the government set up HMT in Bengaluru in 1953. HMT tractor division was established in Pinjore, Haryana in 1971 to manufacture HMT Tractors.<br /><br />“In view of the deteriorating position of the company and hardship being faced by the employees due to non-payment of salary/wages and other retirement dues, it has been decided to close down the tractor division of HMT by offering attractive VRS/VSS to its employees and clearing all their dues,” the release added.</p>
<p>The Centre on Thursday approved closure of loss-making tractor division of HMT at Pinjore and sanctioned Rs 718.72 crore for payment of outstanding salaries and other dues at the public sector entity.<br /><br /></p>.<p>The Union Cabinet, chaired by Prime Minister Narendra Modi, also gave its approval to transfer of select small parcels of HMT land at Bengaluru and Kochi to different government entities for their use in larger public interest.<br /><br />“The cabinet has approved the budgetary support to HMT for payment of outstanding salary / wages and other employee-related dues. It also approved closure of HMT Tractor division by offering attractive VRS / VSS at 2007 notional pay scales”, said a statement.<br /><br />“The decision will have a financial implication (cash outgo) of Rs 718.72 crore for payment of outstanding salary, wages and statutory dues, VRS/VSS ex-gratia payments and clearing of tractor division’s liabilities towards Bank and creditors.<br />The Cabinet has also given its approval for transfer of selected small parcels of HMT land at Bengaluru and Kochi to different government entities for their use in larger public interest”, said the statement.<br /><br />Machine tool start<br /><br />Aimed at producing machine tools required for building an industrial edifice for the country, the government set up HMT in Bengaluru in 1953. HMT tractor division was established in Pinjore, Haryana in 1971 to manufacture HMT Tractors.<br /><br />“In view of the deteriorating position of the company and hardship being faced by the employees due to non-payment of salary/wages and other retirement dues, it has been decided to close down the tractor division of HMT by offering attractive VRS/VSS to its employees and clearing all their dues,” the release added.</p>
