The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the budgetary support to HMT Ltd. for payment of outstanding salary / wages and other employee-related dues. It also approved closure of HMT Tractor Division by offering attractive VRS / VSS at 2007 notional pay scales.
It will have a financial implication (cash outgo) of Rs. 718.72 crore for payment of outstanding salary, wages and statutory dues, VRS/VSS exgratia payments and clearing of Tractor Division’s liabilities towards Bank, creditors etc.
The Cabinet has also given its approval for the transfer of selected small parcels of HMT land at Banglore and Kochi to different Government entities for their use in larger public interest.