Government moves closer to shut down 3 HMT units, Tungabhadra Steel

NEW DELHI: Moving closer to shutting down five ailing PSUs, the government today said it has submitted closure proposals related to four companies including three HMT units and Tungabhadra Steel to CCEA for approval.

"Cabinet notes for closure of four unviable public sector companies namely HMT Watches Ltd, HMT Chinar Watches Ltd, HMT Bearings Ltd, and Tungabhadra Steel Products Ltd, have been finalised and submitted to the Cabinet Committee of Economic Affairs (CCEA) for approval," Minister of State for Heavy Industries and Public Enterprises G M Siddeshwara said in a written reply in the Rajya Sabha.

"As regards the fifth unviable public sector company namely Hindustan Cables Ltd, a draft Cabinet note has been circulated for inter-ministerial consultation," he added.

The Cabinet had earlier given in-principle approval for shutting down the five PSUs.

With the individual proposals for closure, the Ministry of Heavy Industries and Public Enterprises will approach the Cabinet for funds to grant VRS to some 2,800 staffers of the five state-owned firms.

"We are going to give them (employees) good package through VRS," Union Heavy Industries and Public Enterprises Minister Anant Geete had earlier told PTI.

While employees drew salary as per the 1997 pay scale, VRS will be based on the 2007 figure, Geete had said.