It is reported in Business Line today ( dated 17th April 2013) that the Cabinet Committee on Economic Affairs (CCEA) may consider a revival package of Rs. 1,000 crore for Hindustan Machine Tools Limited (HMTL). The revival package will involve cash package of Rs. 450 crore and non-cash assistance of Rs. 630 crore. Modernisation and technology upgradation will be part of the package. It is also proposed to sell the surplus land with HMT.

HMT was established in 1953 with headquarters at Bangalore. Its main business is manufacture of tractors although its subsidiaries manufacture watch etc. It is estimated that there are about 1500 employees at present. The revival package proposes to increase the production of tractors from the present 4500 to 10,000 per year.

The HMT has been in loss for the last 5 years. We do not know the details of the revival package, except the press report. It is the responsibility of the government to give all assistance and revive the sick PSU.