Government mulls sale of HMT Bearings, TCIL

NEW DELHI: After taking a decision on outright sale of ailing Scooters India ( SIL), the government proposes to follow a similar model for disinvestment of HMT Bearings and Tyre Corporation of India (TCIL) - the sick units considered to be beyond revival.

"The Department of Heavy Industry has prepared a proposal for a complete sell-out of these two companies as they are beyond redemption," an official said.

These two units have been draining the government resources as they have reported losses for the last several years, he added. During 2009-10, HMT Bearings' net loss was at Rs 15.31 crore, while Tyre Corporation of India registered a loss of Rs 14.67 crore.

HMT Bearings, located in Hyderabad, manufactures ball and roller bearings. Kolkata-based Tyre Corporation of India (TCIL) is engaged in manufacturing and marketing of automotive tyres.