JOIN USThe government has approved a financial package of approximately Rs 77 crore for state-run HMT Ltd and its subsidiary HMT Machine Tools Ltd to undertake payments of staff salaries, wages and other statutory dues.
The Cabinet Committee on Economic Affairs (CCEA) on Thursday extended budgetary support in the form of a non-Plan loan of Rs 27.06 crore for payment of salaries and statutory dues to the employees of HMT Limited for the period March-September 2013, according to a government statement.
CCEA has also approved Rs 50.34 crore to HMT Machine Tools Limited for payment of statutory dues like provident fund and gratuity for the period September 2012 to March 2013.
The decision to provide financial assistance to the two public sector units of central government was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) in New Delhi.
According to the statement, this decision would mitigate hardships being faced by employees and also motivate them and help achieve the goal of revival and restructuring of the companies.
HMT Limited and HMT Machine Tools Limited, a subsidiary of HMT Limited established in 1953, are public sector enterprises under the administrative control of the Department of Heavy Industry.
The company had 1,439 people on its rolls as on October 31 last year.