The Centre on Friday approved transfer of land of the now defunct HMT Watches at Bengaluru and Tumakuru measuring 208.35 acres to Indian Space Research Organization (Isro).

The Union Cabinet, at a meeting chaired by Prime Minister Narendra Modi, also approved transfer of an acre land of Bengaluru (Global Warehouse) land of HMT Limited to Gas Authority of India Limited (GAIL) on payment of Rs 34.30 crore and applicable taxes and duties. Isro will have to shell out Rs 1,194.21 crore and applicable taxes and duties for the 208.35 acres of land.

The proceeds from sale of land will be deposited by the company in government accounts against the loans and advances, after meeting the immediate liabilities and accounting for tax liabilities arising out of the transaction. 

The government decided to close down HMT Watches in January 2016. The sale/transfer of land to Isro and GAIL will free the productive resources and ensure better utilisation of the land, a statement said.