The government Friday approved a Rs.136 crore loan to HMT Machine Tools Limited to help the company revive.
"The company is expected to turnaround with the proposed infusion of funds at its head office in Bangalore and its manufacturing units," a statement issued after a meeting of the Cabinet Committee on Economic Affairs (CCEA) said.
Of the total, Rs.75 crore will be used for working capital requirements.
The government also set aside Rs.61.04 crore for implementing the pay revision of 1997.
Apart from providing loan to the cash-strapped comapny, the government waived interest on its loan up to March 31, 2014 of Rs.38.58 crore.
The CCEA also empowered the company's board to increase the retirement age from 58 to 60 years to the extent of 10 percent of the employees retiring in any year.
The company which manufacturers various types of machine tools and printing machines has a work force of 2,806 with manufacturing units located at Bangalore, Pinjore, Kalamassery, Hyderabad and Ajmer.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app