HMT submits voluntary retirement/separation scheme to govt

State-run watch and tractor maker HMT, which has been incurring losses since last 15 years, has submitted a voluntary retirement/voluntary separation scheme to downsize its manpower to the government.
The present manpower of the Company is 1,045 with an annual wage bill of around Rs 45 crore, and there had been unconfirmed reports that the government plans to shut down the iconic watchmaker.
"The Company has been incurring cash losses since last 15 years as can be seen in our Annual Reports submitted to you and other stakeholders from time to time. The Company is on budgetary support for payment of salaries and statutory dues since for over the past 10 years.

"In view of the above and with the aim of reducing recurring costs, the Ministry had directed the company to formulate an attractive VR/VS Scheme to its employees in discussions with the employees' union/association.
"A scheme for downsizing of manpower has been prepared based on the direction of DHI (Department of Heavy Industries), and after due approval of the Board and has been submitted to the Government for its examination and necessary action," HMT said in a filing to the Bombay Stock Exchange.
Last year, the government had approved the Rs 1,083-crore revival package for HMT that aimed to modernise the company and help it turn around in five years.