The Government has approved HMT’s revival plan amounting to Rs 1083.48 crore and it will be implemented in a phased manner.

Also the Government has given permission to HMT to sell identified surplus land for redemption of the preference share capital and repayment of bridge loan.

The company in a release to exchanges said the Union Government has approved revival and financial restructuring plan for the company recommended by the Board for Reconstruction of Public Sector Enterprises.

The revival plan envisages financial support, waivers and so on, from the Union Government.

As part of the plan, cash infusion of Rs 447.92 crore in the form of issue of eight per cent redeemable preference share capital of the face value of Rs 425 crore for plant modernisation and capacity augmentation, technology upgradation, working capital and repayment of certain liabilities.

A bridge loan from the Union Government is Rs 22.92 crore at seven per cent interest a year, for over a period of two years. Also non-cash assistance in the form of conversion of Union Government loans into equity to the extent of Rs 429.92 crore and waiver of accumulated interest of Rs 205.64 crore on Union Government loans is planned.

The Centre has also approved for implementation of revised pay scales/wages and revision in the retirement age of employees from 58 years to 60 years from the date of plan approval.

anil.u@thehindu.co.in

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