HMT's 3 units among 5 PSEs to be shut

HMT's 3 units among 5 PSEs to be shut

HMT’s three units — two in Karnataka and one in Andhra Pradesh — are among the five sick Central Public Sector Enterprises which the Union Government has decided to close down.

Union Heavy Industries and Public Enterprises Minister Anant Geete told the Lok Sabha on Tuesday that HMT Machine Tools and HMT Watches in Karnataka, as well as the HMT Bearings in Andhra Pradesh, would be closed down.

He, however, did not reveal which two other sick Central Public Sector Enterprises (CPSEs) would be closed down.

Geete informed the House that HMT Watches, HMT Machine Tools and HMT Bearings had incurred losses of Rs 24,248 lakh, Rs 5,266 lakh and Rs 1,598 lakh respectively in 2013-14.
Responding to queries of MPs during Question Hour, Geete said the employees of the five sick CPSEs would be satisfied as the Union Government would provide them a good package based on the 2007 pay scale while closing down the units.

65 CPSEs listed sick
Geete on Tuesday presented in the House a list of 65 CPSEs, which could be considered sick in accordance with the Sick Industrial Companies (Special Provisions) Act, 1985.

The list included Air India, Mahanagar Telephone Nigam and Hindustan Shipyard. Besides, ITI and STCL —  both based in Karnataka — are also among the 65.

A CPSE is considered sick if it has accumulated losses in any financial year equal to 50% or more of its average net worth during four years preceding such financial year, said Geete.

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