New Delhi: After taking a decision on outright sale of ailing Scooters India Ltd (SIL), the government proposes to follow a similar model for disinvestment of HMT Bearings and Tyre Corporation of India-the sick units considered to be beyond revival.
“The Department of Heavy Industry has prepared a proposal for a complete sell-out of these two companies as they are beyond redemption,” an official told PTI.
These two units have been draining the government resources as they have reported losses for the last several years, he added.
During 2009-10, HMT Bearings’ net loss was at Rs15.31 crore, while Tyre Corporation of India reported a loss of RsRs 14.67 crore.
HMT Bearings, which is located in Hyderabad, manufactures ball and roller bearings. It is a subsidiary of government controlled HMT Ltd, which holds its 97% equity shares.
Kolkata-based Tyre Corporation of India (TCIL), engaged in manufacturing and marketing of automotive tyres, is wholly-owned by the government.
However, since 2002, the company which is awaiting revival from the Board for Industrial and Financial Reconstruction (BIFR) has been doing 100% jobbing work for other tyre manufacturers like Ceat, Birla Tyres due to shortage of working capital.
Sources said, the proposals for outright sale will be sent to the BIFR for its clearance.
In May, the government had decided to divest its entire 95% in Scooters India Ltd (SIL), which primarily manufactures three-wheelers, aimed at reviving the company that has been incurring losses since 2002-03.
As on March 2010, there were 59 sick central public sector enterprises including Hindustan Salts, NEPA Ltd, Cement Corporation of India and HMT Machine Tools.