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| Exchange Disseminated Time | HMT Ltd has informed BSE that the Government of India has approved the Revival Plans of HMT Machine Tools Ltd, the Subsidiary, which envisages financial Support, Waivers & concessions from the Government of India as under:
1. Cash injection of Rs 723 crore through the Company, the Holding Company in the form of-
i. 3.5% Preference Share Capital to the extent of Rs 443 crore redeemable after three years to be utilized for repayment of VRS related loans; repayment of long term loans: and discharge of earlier liabilities on interest payment met from the working capital;
ii. Equity Share Capital infusion to the extent of Rs 180 crore towards capital expenditure; training & retraining; and technological acquisition and upgradation; and
iii. Special non-plan loan for VRS to the extent of Rs 100 crore.
2. Conversion of Government of India loan into Equity amounting to Rs 122.64 Crore.
3. Waiver of interest on loans amounting to Rs 35.16 crore.
4. To take steps for JV formation (with majority shareholding being held by JV partner) at the earliest and to synchronise the process with the proposed merger of Praga Tools Ltd, another Subsidiary.
The Company has received the funds to the extent of Rs 563 crore as on March 31, 2007, as detailed below:
I. Application Money for allotment of 3.5% Preference Share Capital redeemable after 3 years: Rs 443.00 crore
II. Application money for allotment of Equity Share capital
a. Capital Expenditure: Rs 90.00 crore
b. Technological acquisition & up-gradation: Rs 20.00 crore
c. Training & Retraining: Rs 10.00 crore
The subject matter was placed before the Board of Directors of the Company at its Meeting held on April 10, 2007 and the Board has taken note of the funds received from the Government as above. The Board has approved for increase the Authorised Share Capital of the Company to facilitate issue of shares to the Government in respect of the funds received from the Government as above. |
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