The department of heavy industries is set to take HMT Bearings to the Board for Reconstruction of Public Sector Enterprises (BRPSE) shortly. HMT Bearings had posted the lowest accumulated losses among HMT group of companies in 2003-04.
The department’s move is in line with the government’s policy as outlined in the mandate for BRPSE - that revival of only viable PSEs need to be attempted, and capital infusion to units that are unlikely to regain health, should be avoided.
HMT group of public sector undertakings (PSUs) had reported total accumulated losses of about Rs 1290 crore last year. HMT, which was divided into five separate units in 2000 has only one profit-making concern - HMT International, which recorded a turnover of about Rs 20 crore in 2003-04.
HMT Bearings recorded the least accumulated losses of Rs 16 crore, out of all the concerns. The maximum accumulated losses have been recorded by HMT Watches at Rs 415 crore and its 2,200 employees have not received any salary since August 2004. The government had injected some funds in 2002, but the PSU is still in the red.
The company suffers from severe domestic competition which it is unable to meet. “Its machinery is around 35 years old,” sources say. Thus, reviving the company is not going to be easy and it also now depends on how much funds the government has to adhere to its commitment to revive PSUs rather than winding them up.
HMT Ltd, which is engaged in the production of machine tools, watches, tractors, printing machinery etc, has accumulated losses of Rs 400 crore. Its 2,500 employees have, however, been receiving their salaries.
The Hindustan Machine Tools, which has about 4,500 employees has accumulated losses of about Rs 380 crore. The company has received Rs 40 crore budgetary support and all statutory dues of the company have been cleared this month.
“However, it is HMT Chinar Watches which needs utmost attention,” sources point out. It has accumulated losses worth Rs 80 crore and has had no production for the past one year. “Though its 650 employees received salaries till August 2004, no production has taken place,” sources said.
The department’s move is in line with the government’s policy as outlined in the mandate for BRPSE - that revival of only viable PSEs need to be attempted, and capital infusion to units that are unlikely to regain health, should be avoided.
HMT group of public sector undertakings (PSUs) had reported total accumulated losses of about Rs 1290 crore last year. HMT, which was divided into five separate units in 2000 has only one profit-making concern - HMT International, which recorded a turnover of about Rs 20 crore in 2003-04.
HMT Bearings recorded the least accumulated losses of Rs 16 crore, out of all the concerns. The maximum accumulated losses have been recorded by HMT Watches at Rs 415 crore and its 2,200 employees have not received any salary since August 2004. The government had injected some funds in 2002, but the PSU is still in the red.
The company suffers from severe domestic competition which it is unable to meet. “Its machinery is around 35 years old,” sources say. Thus, reviving the company is not going to be easy and it also now depends on how much funds the government has to adhere to its commitment to revive PSUs rather than winding them up.
HMT Ltd, which is engaged in the production of machine tools, watches, tractors, printing machinery etc, has accumulated losses of Rs 400 crore. Its 2,500 employees have, however, been receiving their salaries.
The Hindustan Machine Tools, which has about 4,500 employees has accumulated losses of about Rs 380 crore. The company has received Rs 40 crore budgetary support and all statutory dues of the company have been cleared this month.
“However, it is HMT Chinar Watches which needs utmost attention,” sources point out. It has accumulated losses worth Rs 80 crore and has had no production for the past one year. “Though its 650 employees received salaries till August 2004, no production has taken place,” sources said.
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