Cabinet approves closure of three HMT companies

New Delhi, Jan 6 The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved the closure of three Hindustan Machine Tools (HMT) companies -- HMT Watches, HMT Chinar Watches and HMT Bearings.

"With a cash assistance of Rs.427.48 crore, the three loss-making subsidiaries of HMT Ltd. namely HMT Watches Ltd, HMT Chinar Watches Ltd., HMT Bearings Ltd., will attain closure after separation of about a thousand employees through attractive VRS/VSS and settlement of their dues," said a CCEA statement.

The employees will receive Voluntary Retirement Scheme (VRS) benefits at 2007 pay scales.

The movable and immovable assets of the three companies will be disposed of as per government policy, the statement added.