Modi government decides to shut 3 HMT units, offer VRS to employees

NEW DELHI: Its curtains for iconic timekeeper of the nation — HMT Watches. The cabinet committee on economic affairs (CCEA) gave its goahead to a Rs 427-crore financial assistance package for closure of unviable units of HMT, including the watch manufacturing entity.

The CCEA has approved voluntary retirement scheme ( VRS) package at 2007 pay scales to mitigate the hardships being faced by the employees of HMT Watches Ltd, HMT Chinar Watches Ltd & HMT Bearings Ltd and to close their operations, an official statement said on Wednesday.

“With a cash assistance of Rs 427.48 crore, the three loss-making subsidiaries of HMT will attain closure after separation of about a thousand employees through attractive voluntary retirement scheme and voluntary separation scheme and settlement of their dues,” the government said in the statement.

Movable and immovable assets of the companies would be disposed of as per the government policy, it said. Last year, the cabinet had given inprinciple approval for closing down five state-run firms under the Heavy Industries Ministry which include three units of HMT, Tungabhadra Steel and Hindustan Cables. The government’s statement said there are 31 central public sector enterprises (CPSEs) under the Department of Heavy Industry, of which 19 are incurring losses.

“The Department of Heavy Industry has been undertaking appraisals of each loss-making CPSE to assess the prospects of revival,” the statement said, adding that those found chronically sick are disinvested or closed down after payment of due compensation to employees.