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
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.