Set up expert group to revive HMT: Parl panel

New Delhi, August 5

A parliamentary panel has asked the government to constitute an expert group consisting of renowned technocrats to examine the prospects of reviving all the ailing units of HMT Limited. 

In its report presented to the Lok Sabha, the Committee on Petitions suggested a detailed strategy of allocating a special financial package to all PSUs, including all units of HMT, to release the pay and allowances apart from statutory dues to all serving as well as retired employees before March 2019.

The panel said it was “flabbergasted” to discover the huge backlog in payment Of salaries and other allowances to the employees of various units of HMT Limited, and that the  “statutory dues” of retired employees or those who availed VRS had not been released. 

The panel also recommended that the Centre undertake an original time-bound comprehensive study to assess the overall performance and requirements of public sector undertakings in the country with a view to making them commercially viable. 

The government had recently decided to close down three subsidiaries of HMT Limited, namely HMT Watches, HMT Chinar Watches and HMT Bearings, by offering voluntary retirement/separation schemes to its employees which is under implementation. 

The company’s tractor division at Pinjore, Haryana, was provided a revival package in August 2013 but could not turn around owing to various factors like rising costs, technology gap, market conditions and working capital constraints. 

It degenerated substantially with mounting losses and pending dues towards salaries, statutory liabilities, outstanding dues of suppliers and service providers as well as complete erosion of working capital. — PTI