New Delhi: The government Thursday said it has initiated the process for obtaining Parliament's approval for disinvesting majority stake, through a strategic partner, in ailing HMT Bearings Ltd.
"... action in HMT Bearings has already been initiated for obtaining approval of Parliament required for identification of the strategic partner involving majority disinvestment," Minister for Heavy Industries and Public Enterprises Praful Patel said in a written reply to Lok Sabha.
During 2009-10, HMT Bearings' net loss stood at Rs 15.31 crore. The company, which is located in Hyderabad, manufactures ball and roller bearings.
It is a subsidiary of the government controlled HMT Ltd, which holds its 97 per cent equity shares.
HMT Ltd subsidiaries include HMT Machine Tools, HMT Watches, HMT Chinar Watches, HMT Bearings and HMT International.
The minister said production is reported by all the subsidiaries of HMT Ltd except HMT Chinar Watches.
However, HMT Machine Tools (with five units) and HMT Bearings are sick units, he said in the written reply.
The number of employees in HMT Machine Tools units is 3,352 and in HMT Bearings unit is 80.
Further, the minister said, a revival package has already been sanctioned for HMT Machine Tools Ltd. The company has six units at Bangalore, Pinjore, Ajmer, Hyderabad, Andhra Pradesh and Kalamassery (Kerala).
First Published: Thursday, August 18, 2011, 18:23