Govt considers up to 74 pc disinvestment in HMT Bearings Ltd

NEW DELHI: The government is planning to offload stake in HMT Bearings Ltd (HBL) and is scouting for joint venture partners in some other state-owned firms in a bid to revive sick units.

"Disinvestment up to 74 per cent equity in HMT (Bearing) is under consideration of the government," Minister of State for Heavy Industries and Public Enterprises Arun Yadav said in a written reply to a query in Lok Sabha.

HBL, set up in 1964, is 97 per cent held by HMT Ltd and makes ball and roller bearings.

On whether the government has any proposal to reduce its equity in other companies, Yadav said, "the government has invited expression of interest (EoI) for joint venture partner in Tungabhadra Steel Products Ltd, Triveni Structural Ltd, Nepa Ltd and Hindustan Cables Ltd, which may have an impact on government's equity in these PSEs."

The minister said the government has provided funds worth Rs 5,521.73 crore for 12 units including HMT (Bearings) Ltd, Andrew Yule and Co, Bridge and Roof Co Ltd, Heavy Engineering Corp Ltd and Braithwaite and Co Ltd.

Further, Yadav said the government did not have any fixed target to revive sick units for the current Five Year Plan period or in the current financial year.

Yadav added that the department undertakes restructuring of Central Public Sector Enterprises under its administrative control in line with the overall Public Sector Policy of the government.

So far, 27 loss-making PSE cases have been submitted to the Board for Reconstruction of Public Enterprises (BRPSE) which has given its recommendations in all cases.

Out of these 27 PSEs, the government has approved revival or restructuring for 15 of them and joint ventures/closure for 4 of them.

Yadav added that the department undertakes restructuring of Central Public Sector Enterprises under its administrative control in line with the overall Public Sector Policy of the government.

So far, 27 loss-making PSE cases have been submitted to the Board for Reconstruction of Public Enterprises (BRPSE) which has given its recommendations in all cases.

Out of these 27 PSEs, the government has approved revival or restructuring for 15 of them and joint ventures/closure for 4 of them.