Resuscitating the Glorious Enterprise
Amidst the news of the massacre in Doda (J & K), the slain telecom engineer K Suryanarayana and the mayhem in Vadodara (Gujarat), BRPSE (Board for Reconstruction of Public Sector Enterprises) with its latest policy decision, gave me a reason to not drown myself in despair and even manage a smile.
The decision referred to here is the clearance of a Rs. 835-crore package for the revival of five machine tool manufacturing units of Bangalore-based HMT Ltd. I could not have come across a better non-violent news piece yesterday.
There is no deny
ing the fact that the present-day PSEs are only a mere shadow of themselves. Globalisation together with outdated technology has wrecked havoc on their fortunes. During my six-week industrial training at HMT Machine Tools Division, Bangalore (its inauguration by none other than PM Nehru in 1955 is shown in the picture) in the summer of 2003, I couldn't have seen a clearer thought-provoking picture of the dire straits that the undertaking was in that forced me to wonder: what went wrong?
A mere glance at the units is enough to present one with the entire play titled 'Fall from grace'. I was advised to not even bother visiting the near-by HMT Watches Ltd. simply because nothing happens there. When was the last time anyone ever bought an HMT watch in my social circle eh.. with foreign brands like Swatch ruling the roost now (my head hangs low as I realise that I myself possess three imported watches).
I learnt a lot during my stay there and was awe-struck with four-head Planer machines, CNC machines and turning centres and the Foundry Shop. I will never forget the sight of a CNC Machining Centre working on an imported Aluminium plate (a component of Tejas - India's first indigenously designed and fabricated Light Combat Aircraft (LCA)) and that of hot molten cast iron being poured into moulds and the subsequent removal of final castings. Imagine how dismayed I was to learn that the operator in the first case had fixed the plate wrongly (though it was corrected JIT-Just In Time.. no pun intended) and that the foundry comes to life only once in ten days, that too when the stars are aligned favourably!
In light of the above-mentioned evidences, the proposed revival package comprising of financial restructuring including conversion of debt into equity, fresh infusion of funds, technology upgradation, modernisation and upgrading of plant and machinery, is a welcome westerly (read breeze). The five manufacturing plants operating under HMT Machine Tools Ltd. to be covered under the package are located at Bangalore, Kalamassery in Kochi, Hyderabad, Ajmer and Pinjore. The recommendations will now be forwarded by the Union Ministry of Heavy Industries to the Union Cabinet for a final approval.
Separate revival packages are also on the anvil for other subsidiaries such as Bangalore-based HMT Watches Ltd. that shelled out its 100 Millionth Watch in 2000, Srinagar-based HMT Chinar Watches Ltd. and the holding company HMT Ltd. which includes the tractor arm located at Pinjore, Haryana.
I am proud to state that the wheels of change have already started to turn with HMT Bearings Ltd. and Praga tools Ltd., the Hyderabad-based subsidiary of HMT Ltd. receiving Rs. 51 crore and Rs. 240 crore bailout packages respectively from the Government last November.
Here's hoping that the sorry state of affairs marring a once-upon-a-time glorious entity turns around for a better morrow soon.
The decision referred to here is the clearance of a Rs. 835-crore package for the revival of five machine tool manufacturing units of Bangalore-based HMT Ltd. I could not have come across a better non-violent news piece yesterday.
There is no deny
ing the fact that the present-day PSEs are only a mere shadow of themselves. Globalisation together with outdated technology has wrecked havoc on their fortunes. During my six-week industrial training at HMT Machine Tools Division, Bangalore (its inauguration by none other than PM Nehru in 1955 is shown in the picture) in the summer of 2003, I couldn't have seen a clearer thought-provoking picture of the dire straits that the undertaking was in that forced me to wonder: what went wrong?A mere glance at the units is enough to present one with the entire play titled 'Fall from grace'. I was advised to not even bother visiting the near-by HMT Watches Ltd. simply because nothing happens there. When was the last time anyone ever bought an HMT watch in my social circle eh.. with foreign brands like Swatch ruling the roost now (my head hangs low as I realise that I myself possess three imported watches).
I learnt a lot during my stay there and was awe-struck with four-head Planer machines, CNC machines and turning centres and the Foundry Shop. I will never forget the sight of a CNC Machining Centre working on an imported Aluminium plate (a component of Tejas - India's first indigenously designed and fabricated Light Combat Aircraft (LCA)) and that of hot molten cast iron being poured into moulds and the subsequent removal of final castings. Imagine how dismayed I was to learn that the operator in the first case had fixed the plate wrongly (though it was corrected JIT-Just In Time.. no pun intended) and that the foundry comes to life only once in ten days, that too when the stars are aligned favourably!
In light of the above-mentioned evidences, the proposed revival package comprising of financial restructuring including conversion of debt into equity, fresh infusion of funds, technology upgradation, modernisation and upgrading of plant and machinery, is a welcome westerly (read breeze). The five manufacturing plants operating under HMT Machine Tools Ltd. to be covered under the package are located at Bangalore, Kalamassery in Kochi, Hyderabad, Ajmer and Pinjore. The recommendations will now be forwarded by the Union Ministry of Heavy Industries to the Union Cabinet for a final approval.
Separate revival packages are also on the anvil for other subsidiaries such as Bangalore-based HMT Watches Ltd. that shelled out its 100 Millionth Watch in 2000, Srinagar-based HMT Chinar Watches Ltd. and the holding company HMT Ltd. which includes the tractor arm located at Pinjore, Haryana.
I am proud to state that the wheels of change have already started to turn with HMT Bearings Ltd. and Praga tools Ltd., the Hyderabad-based subsidiary of HMT Ltd. receiving Rs. 51 crore and Rs. 240 crore bailout packages respectively from the Government last November.
Here's hoping that the sorry state of affairs marring a once-upon-a-time glorious entity turns around for a better morrow soon.
posted by optimism at 12:26 PM
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