"More submissions have come to us and some big entrepreneurs are expected. Keeping in mind more entrepreneurs, the date of opening of EOI has been extended," General manager, HMT Tractor, Bangalore C Patnaik told a national daily.
As per the official website of HMT, it was...
published that they are inviting expression of interest for licensing/leasing out of facilities available at HMT Pinjore for manufacture/assembly/testing of tractors and R&D infrastructure on medium/long term tenure. HMT officials also informed that the invitation for EOI has been issued after the ministry of heavy industries and public enterprises ordered department of heavy industries (DHI), Delhi to invite EOI.
Apart from the mentioned facilities, the officials in the EOI also demarcated 50 acres of land including 10 acres covered area of the factory and administration building of four floors to be leased out for office. Patnaik told the daily the last date for submission and opening of the tender was July 15 at first, which was extended to the July 28 later on. However, now it has been extended to to August 11 by 3 pm.
He said, the DHI took the decision to lease out the shut plant in Pinjore and it will take some time to handover the factory to the other party after the opening of the tender as verification of documents and further documentation takes time.
HMT Pinjore comprises a tractor plant and a machine tool unit. Last year, the Central Government had decided to close three unviable units of HMT including the once popular HMT Watches, along with HMT Chinar Watches and HMT Bearings, by offering an "attractive" VRS to the employees as per 2007 pay scales.
Earlier, Haryana Government had asked the Centre to transfer surplus land of the tractor-manufacturing unit's 837 acres to the state for creation of an industrial estate. Centre asked Haryana to take over the entire land in lieu of settling dues related to voluntary retirement schemes (VRS) of its employees and other liabilities.
The PSU had manufactured successful tractors like HMT Zetor, HMT 3511 and HMT 5911 suitable for all farmers. For nearly two decades, the unit's manufacturing capacity had gone down drastically with private players capturing the tractor market, directly impacting around 2,000 employees. HMT had its golden days till 1999 when it reached the highest output figure of 19,500 tractors in a year and manufactured the highest number of machine tools. Its downfall began from 2000 following the surge in private players in tractor making, especially foreign companies. HMT's failure in keeping pace with the changing trends played its part as well. In April 2013, the Center approved Rs 1,083 crore for the revival ailing HMT, Pinjore. The package included salary and arrears of employees, repayment of loans taken by HMT from public sector banks and a working capital of Rs 100 crore to be released in three installments.