Karnataka: Govt blocking Centre's HMT revival plans as package gets ready, says HD Kumaraswamy

Bengaluru: Union Minister for Heavy Industries and Steel HD Kumaraswamy on Monday accused the state government of trying to derail the union government's efforts to revive HMT by unleashing the forest department to create obstacles just as a special revival package was nearing finalisation.

The union minister, addressing a press conference, questioned the timing of a notice issued by the Bengaluru Urban deputy conservator of forests (DCF) directing HMT to surrender about 430 acres, which the department has identified as forest land.

"The matter is pending before the court. Issuing such a notice and fixing a deadline at this stage amounts to interference with judicial proceedings," he said, adding that HMT would challenge the order in a court of law.


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Kumaraswamy, who represents Mandya in the Lok Sabha, said he had been working to secure a special package for the loss-making public sector undertaking and that discussions on the proposal were scheduled for next week.

"Just when the package was close to being announced, the state government got such a notice issued," he alleged.

Kumaraswamy claimed the land had been valued at nearly Rs 15,000 crore and alleged that vested interests were eyeing the property. He also accused previous governments of allowing large-scale sale and development of HMT land and said he had stopped further sales during his tenure as chief minister in 2006.

"I was determined that HMT land should not fall into the hands of land grabbers or the real-estate mafia," he said.

The minister said HMT remained an important manufacturer of machinery for sectors such as defence, space and research, and continued to enjoy demand in domestic and overseas markets.

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"Under the leadership of PM Modi, we will revive HMT. No one can stop us," he said, while assuring employees that they need not be anxious over the state government's action.

Kumaraswamy also alleged that the Congress government had created hurdles for other central public sector initiatives, including efforts to strengthen Kudremukh Iron Ore Company.

He contrasted Karnataka with Andhra Pradesh, saying neighbouring states worked more closely with the Centre to attract industrial investments and revival packages.

"If the State Government itself creates a hostile environment, how will industries come to Karnataka" he asked.