The Rehabilitation Scheme is based on the revival plan of HMT Machine Tools approved by the Centre during March 2007. This included infusion of funds in the form of equity and preference shares, conversion of government of India loans into equity and waiver of interest on government loan, HMT informed BSE today.
The rehabilitation scheme also envisages various concessions and reliefs from various stakeholders like banks, creditors, investors, statutory authorities etc. apart from the merger of Praga Tools, Hyderabad, another Subsidiary of HMT with HMT with effect from April 1, 2007.