The Hindu Business Line : CCEA okays HMT Machine revamp

The Government today decided to pump in Rs 723 crore to revive HMT Machine Tools Ltd through a joint venture route and also provide funds for a voluntary retirement scheme.

Briefing newspersons after the meeting of the Cabinet Committee on Economic Affairs (CCEA), which cleared the restructuring package, the Finance Minister, Mr P. Chidambaram, said that out of the total amount being pumped in by the Government, Rs 443 crore will be in the form of preferential share capital and Rs 180 crore by fresh equity capital and another Rs 100 crore through a special non-plan loan for the VRS.

"With the restructuring of the company, its balance sheet including the debt equity ratio will improve," he said adding that the details of the joint venture are yet to be worked out. The restructuring will also result in reduction of the accumulated losses while critical manufacturing facilities will be upgraded, he said.

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