HMT may get RS 835 crore revival package | india | Hindustan Times
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HMT may get RS 835 crore revival package

HMT Machine Tools Ltd, is set to get a booster doze with the UPA government likely to announce a revival package of Rs 835 crore soon.

india Updated: May 01, 2006 13:39 IST

State-owned HMT Machine Tools Ltd, which was on the previous government's divestment list, is set to get a booster doze with the UPA government likely to announce a revival package of Rs 835 crore soon.

"We had sent our recommendations and the Board for Reconstruction of Public Sector Enterprises has approved a revival package of Rs 835 crore. The Ministry (of Heavy Industry) is likely to send a cabinet note shortly," HMT Chairman and Managing Director MS Zahed said.

Zahed said the holding company HMT Ltd and five of its subsidiaries would get separate revival packages. While the government has already approved schemes for HMT Bearings and Praga Tools, the other packages were being finalised, he said.

The six packages would total about Rs 1,700 crore, he said, adding in November last year, HMT Bearings had recieved a package of Rs 51 crore and Praga Tools Rs 240 crore.

HMT Machine Tools would be getting a package of Rs 835 crore and the balance about Rs 565 crore would be distributed among HMT Watches, HMT Chinar Watches and the holding company HMT Ltd which also includes the tractor division.

The packages are likely to include new loans, interest waivers and more funds for upgradation purposes.

Praga Tools is to be merged with HMT Machine Tools, he said, adding marketing activities have already been merged and the entire process would be finished in next few months.

Zahed said the sixth subsidiary HMT International, which is the export arm of HMT Ltd, has always been a profit making division and so does not need a government bail-out.

The government - through holding company HMT Ltd - has 51 per cent stake in Praga, 97.25 per cent in HMT Bearings and 100 per cent equity in the other four subsidiaries.