Reeling under losses HMT submits voluntary retirement scheme

BELEAGUERED state-run watch and tractor maker HMT has submitted a voluntary retirement/voluntary separation scheme to downsize its manpower to the government. HMT,  which has been incurring losses since last 15 years, has been getting revival packages from the Union government time to time,.

The current manpower of the PSU is 1,045 with an annual...

wage bill of around Rs 45 crore. "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,” HMT said in a filing to Bombay Stock Exchange.

"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.

HMT Watches Limited, a wholly owned subsidiary of HMT Limited has been incurring cash losses since last 15 years. The company is on budgetary support for payment of salaries and statutory dues since for over the past 10 years.

“A scheme for downsizing of manpower has been prepared based on the direction of DHI, and after due approval of the Board and has been submitted to the Government for its examination and necessary action," stated the filing.

Earlier on September 13, IPS reported that HMT Watches is all set to be closed very soon and the 1,105 odd employees at the company’s three factories and corporate head office are seeing red as they will no longer be “keeping time to the nation”. The department of heavy industry under the ministry of heavy industries and public enterprises is reported to have decided to wind down the company, 53 years after it started ticking.