Cabinet nod for closure of 3 HMT units

Cabinet nod for closure of 3 HMT units

The  government on Wednesday approved closure of three loss-making subsidiaries of HMT Ltd, including Bengaluru-based HMT Watches Ltd and HMT Chinar Watches Ltd.

The Cabinet also approved closure of HMT Bearings Ltd and sanctioned voluntary retirement scheme (VRS) package to their employees at 2007 pay scales.

“With a cash assistance of Rs 427.48 crore, the three loss-making subsidiaries of HMT Ltd, namely HMT Watches Ltd, HMT Chinar Watches Ltd and HMT Bearings Ltd, will attain closure after separation of about 1,000 employees through attractive VRS/VSS and settlement of their dues,” read an official statement issued after the meeting of Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi.

There are 31 public sector enterprises under the Department of Heavy Industry (DHI) engaged in manufacturing, consultancy and contracting services. Of these, 12 are making profits and the remaining 19 are incurring losses.

The DHI has been undertaking appraisals of each loss-making enterprise to assess the prospects of revival. As a part of this exercise, the loss making units having the potential of turn around are revived and those found chronically sick are disinvested.

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