PMINDIA

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for the following proposals of Department of Heavy Industry:

i. Transfer of HMT Watches Ltd, land at Banglaore and Tumkur measuring 208.35 acres, to Indian Space Research Organization (ISRO) on payment of Rs. 1194.21 crore and applicable taxes and duties.

ii. Transfer of Bangalore (Global Warehouse) land of HMT Ltd. measuring one acre to Gas Authority of India Limited (GAIL) on payment of Rs.34.30 crore and applicable taxes and duties.

The proceeds from sale of land will be deposited by the Company in Government Accounts against the loans and advances, after meeting the immediate liabilities and accounting for tax liabilities arising out of the transaction.

Background:

HMT Watches Ltd. which was pioneer in manufacturing watches for the common Indian citizen and was once known as Time keepers of India, had to close its operations due to mounting losses with no scope for revival in the current competitive economic scenario. It was decided to be closed down in January, 2016 with offer of attractive VRS/VSS to all their employees. The employees at Banglore and Tumkur availed this Golden Handshake scheme approved by Govt of India and went home happily.

The sale / transfer of land of HMT Watches Ltd., a Central Public Sector Enterprise at Bangalore and Tumkur to other Central Govt. entities viz. ISRO and GAIL will free the productive resources and ensure better utilisation of the scarce land resources in larger public interest.