Government on Thursday announced a financial package of about Rs. 77.4 crore for the state-run HMT Limited and its subsidiary HMT Machine tools Ltd to make payments of salary, wages and statutory dues such as PF and gratuity to its employees.

The decision to provide financial assistance to the two public sector units of central government was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) in New Delhi.

“The CCEA has approved budgetary support, in the form of Non-Plan loan of Rs. 27.06 crore for payment of salary/wages and statutory dues to the employees of HMT Limited for the period from March, 2013 to September, 2013,” an official statement said in New Delhi.

It further stated that “the CCEA has also approved Rs. 50.34 crore to HMT Machine Tools Limited for payment of statutory dues (Provident Fund, Gratuity etc.) for the period from September, 2012 to March, 2013.”

The companies are under the administrative control of the Department of Heavy Industry.

According to the statement, this decision would mitigate hardships being faced by employees and also motivate them and help achieve the goal of revival and restructuring of the companies.

Hindustan Machine Tools Ltd, was established in 1953 for production of machine tools initially. It was renamed as HMT Ltd in 1978 in view of its diversified status and multi-technology products.

The work force of the company as on October 31, 2013 was 1439. The company had authorised share capital of Rs. 2,100 crore, paid up equity share capital of Rs. 760.35 crore and paid up preference share capital of Rs. 443 crore as on March 31, 2013.