Govt looks to shut Tyre Corporation, HMT arm

New Delhi :The government is considering shutting down two more sick central public sector enterprises (CPSEs) — an HMT arm and Tyre Corporation of India Ltd— even as it has no disinvest plans for loss-making CPSEs, Union Minister Anant Geete said today.

Tyre Corporation of India (TCIL) is among the public sector units that had earlier been cleared for revival through the joint venture or disinvestment route.

“We are not going in for disinvestment of any (loss-making PSUs). Some were approved for closure earlier. We have prepared individual proposals for them,” Geete said at a CII event.

“We are also thinking about closing down two more units, including a unit of HMT and Tyre Corporation of India Ltd. We are discussing these proposals.”

However, he did not divulge which unit of HMT is being considered for closure. The minister also said the government has no plans to set up a land bank using surplus land of PSUs.

The Cabinet had earlier given in-principle approval to shut down five ailing CPSEs, including HMT Bearings, HMT Watches, HMT Chinar Watches, Tungabhadra Steel Products and Hindustan Cables. The Heavy Industries Ministry has now firmed up individual proposals and will again approach the Cabinet for the final nod.

Also, the first-ever policy for the country’s capital goods sector “will be finalised within 1-2 months and sent to the Cabinet for approval”.

The government has proposed a long-term, stable and rationalised tax and duty structure to promote the capital goods sector, one of the vital cogs to realise the vision of ‘Make in India’.

The National Capital Goods Policy is formulated with the vision to increase the share of capital goods contribution to 20 per cent of total manufacturing activity by 2025, from the current 12 per cent, said the draft policy released by Department of Heavy Industries.

On the Volkswagen issue, Geete said the government had issued a notice to the German car major earlier this month after testing agency ARAI found “significant variations” in on-road emission levels in diesel models of Jetta, Octavia, Audi A4 and Audi A6 in India.

The government, Geete said, will take steps to enable Indian steel industry to compete with countries like China and Korea, from whom it’s currently facing stiff competition.