**Executive Summary**
This document is the response to Unstarred Question No. 314 in the Lok Sabha concerning the revival of HMT Machine Tools Ltd., answered on December 2, 2025. It addresses the steps taken to revive HMT Machine Tools Ltd., particularly its Kalamassery, Kerala unit, and clarifies issues related to pay scales, financial status, and land use. A Technical Committee was formed on November 1, 2024 to work out recommendations for revival and has since submitted its report.
**Key Points / Main Content**
* **Revival Efforts:**
* The Kalamassery Unit is currently operational as a manufacturing unit of HMT Machine Tools Limited, a subsidiary of HMT Limited.
* A Technical Committee was constituted by the Government on November 1, 2024, to provide recommendations for the revival of HMT Machine Tools Limited. The Committee has submitted its report.
* **Pay Scales and Management:**
* HMT Machine Tools Ltd. did not meet the eligibility criteria for revision of pay scales from January 1, 2007, and January 1, 2017.
* There is a 2-month lag in salary disbursement to employees at the Kalamassery Unit.
* The Kalamassery Unit, being a unit of HMT Machine Tools Ltd., does not have a separate Chairman or Managing Director.
* **Financial Status and Tenders:**
* HMT Machine Tools Limited is facing a severe financial crisis due to old plant and machinery and low productivity.
* The company is losing tenders under the Small-Scale Industry (SSI) preference clause.
* **Land Assets:**
* The Government has designated Estate Officers for HMT Ltd. and its subsidiaries under the Public Premises (Eviction of Unauthorised Occupants) Act, 1971, via Statutory Order 222 dated January 14, 2011.
* **Expansion Plans:**
* HMT Machine Tools Limited, as a CPSE registered under the Companies Act, operates according to the Companies Act and Government guidelines for CPSEs, making its own investment decisions based on operational requirements.
**Impact Analysis**
**Stakeholder: HMT Machine Tools Ltd. (including Kalamassery Unit)**
* **Impact:**
* Efforts are underway to revive the company through a Technical Committee.
* Financial constraints and outdated machinery continue to pose challenges.
* Pay scale revision criteria not met, resulting in salary disbursement delays.
* Losing tenders due to not meeting small scale industry criteria.
* **Action Required:**
* Implement recommendations from the Technical Committee report.
* Address financial crisis and improve productivity.
* Evaluate investment decisions to modernize operations.
**Stakeholder: HMT Employees (especially in the Kalamassery Unit)**
* **Impact:**
* Potentially affected by the revival plans.
* Experiencing delays in salary disbursements.
* **Action Required:**
* Await updates on revival plans and potential impact on employment.
**Stakeholder: Government of India (Ministry of Heavy Industries)**
* **Impact:**
* Responsible for overseeing the revival of HMT Machine Tools Ltd.
* Ensuring compliance with legal and regulatory frameworks.
* Implementing land asset protection measures.
* **Action Required:**
* Monitor implementation of the Technical Committee's recommendations.
* Provide necessary support for the financial restructuring of HMT.
* Ensure compliance with relevant legislation and regulations.
Key Entities Referenced
HMT Machine Tools Ltd.: Company facing financial crisis and subject of revival efforts; subsidiary of HMT Limited.
Kalamassery, Kerala: Location of a key HMT Machine Tools Ltd. unit, central to the questions about revival and land assets.
Technical Committee: Committee constituted by the Government to provide recommendations on revival of HMT Machine Tools Limited.
Public Premises (Eviction of Unauthorised Occupants) Act, 1971: Act under which the Government has designated appropriate employees of HMT Ltd and its subsidiaries as Estate Officers.
Companies Act: Act under which the HMT Machine Tools Limited operates as a CPSE.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 314
ANSWERED ON 02.12.2025
REVIVAL OF HMT MACHINE TOOLS LTD.
314. SHRI HIBI EDEN:
Will the Minister of HEAVY INDUSTRIES be pleased to state:
(a) whether the Government has taken any concrete steps to revive HMT Machine Tools Ltd.,
Kalamassery, Kerala, if so, the details thereof and if not, the reasons therefor;
(b) whether the unit still functions with an outdated 1997 pay scale and irregular salary
disbursements and lacks a permanent Managing Director or Chairman;
(c) whether HMT is facing a severe shortage of working capital;
(d) whether the Government is aware that HMT is losing tenders under the Small-Scale Industry
(SSI) preference clause, despite being a competitive Central PSU;
(e) whether the Government has any plan to protect HMT’s land assets in Kalamassery and use
them for new industrial or employment-generating projects in Kerala, if so, the details thereof;
and
(f) whether the expansion plans include introducing new manufacturing technologies or product
lines in the Kalamassery unit, if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a): Kalamassery Unit is an operational manufacturing unit of HMT Machine Tools
Limited, a subsidiary of HMT Limited. The Government, vide order dated 01.11.2024,
constituted a Technical Committee to work out the recommendations and way forward
for revival of HMT Machine Tools Limited. The Committee has since submitted it
report.
(b): HMT Machine Tools Ltd did not meet the eligibility criteria for revision of pay
scales with effect from 01.01.2007 and 01.01.2017 as per the prescribed guidelines. At
present, there is a lag of 2 months in salary disbursement of employees in Kalamassery
Unit of HMT Machine Tools Ltd. Since Kalamassery Unit is only a unit of HMT
Machine Tools Ltd, it does not have a separate post of Chairman or Managing Director.
(c) & (d): Yes. On account of old plant & machinery, poor productivity, etc., the net
worth of HMT Machine Tools Limited has got eroded over the years and is facing severe
financial crisis.-2-
(e): The Government has designated appropriate employee(s) of the HMT Ltd and its
subsidiaries as Estate Officers vide Statutory Order 222 dated 14.01.2011 under the
Public Premises (Eviction of Unauthorised Occupants) Act, 1971.
(f): HMT Machine Tools Limited, which has several units, including the Kalamassery
unit, being a CPSE registered under the Companies Act, operates as per the provisions of
the Companies Act and the guidelines issued by the Government of India in respect of
CPSEs and takes its appropriate investment decisions as per its operational requirements.
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