The government today approved the transferof HMT Watches Ltd's 208.35 acres land at Bengaluru and Tumkur in Karnataka to Indian Space Research Organization (ISRO) on payment of Rs 1,194.21 crore.
TheUnion Cabinet at a meeting chaired by Prime Minister Narendra Modi here also cleared the transferof Bangalore (Global Warehouse) 1 acre land of HMT Ltd to Gas Authority of India Limited (GAIL) on payment of Rs 34.30 crore and applicable taxes and duties.
"The sale/transfer of land of HMT Watches Ltd, a Central Public Sector Enterprise at Bengaluru and Tumkur to other Central Government entities viz. ISRO and GAIL will free the productive resources and ensure better utilisation of the scarce land resources in larger public interest.
"The proceeds from sale of land will be deposited by the company in government accounts against the loans and advances, after meeting the immediate liabilities and accounting for tax liabilities arising out of the transaction," an official statement said.
HMT Watches, which was a pioneer in manufacturing watches and once known as the Time keeper of India, had to shut its operations due to mounting losses with no scope for revival in the current competitive economic scenario.
In January 2016, the government decided to close down the company with offer of VRS/VSS to all their employees.
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