Land and other immovable assets of five sick public sector units including HMT Watches and Hindustan Cables have been put on sale as the government looks to shut the continuously loss-making units. State-owned construction firm NBCC (India) Ltd is auctioning the assets, which will be sold only to central and state government organisations.
Land parcels and other immovable assets of five central public sector enterprises (CPSEs) — Hindustan Cables Ltd, Instrumentation Ltd, HMT Bearing Ltd, HMT Watches Ltd and Tungabhadra Steel Products are up for sale, according to information available on the NBCC’s website.
NBCC was appointed last September as Land Management Agency (LMA) for disposal of land assets of the sick CPSEs. NBCC (India) Ltd informed BSE that it has “initiated the process” and has issued an advertisement ‘Opportunity for government organisations for purchasing land/immovable assets’ in this regard.
When contacted, NBCC’s CMD Anoop Kumar Mittal told PTI: “The government has taken a decision to utilise land parcels of sick PSUs. We are inviting expression of interest (EOIs) from central government departments and CPSEs as well as state government departments and state PSUs to purchase land and other immovable properties of these five companies.”
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The EOIs have been invited only from government bodies, he added. “We have given one month time for submission of expression of interest,” Mittal said. Asked about the values of these immovable assets, he said the price will be as per the prevailing circle rate or acquisition cost.
These properties are located in nine states — Delhi, Gujarat, Karnataka, Maharashtra, Rajasthan, Telangana, Uttarakhand, Uttar Pradesh, West Bengal.
The government has approved closure of HMT Watches Ltd, HMT Bearings, Hindustan Cables and Tungabhadra Steel Products. In case of Instrumentation Ltd, its Kota unit is being shut down.
As per NBCC website, HMT Watches’ two properties, totalling 92.3 acres, at Nainital in Uttarakhand has been offered for sale, while one property of HMT Bearings Ltd in Hyderabad covering 29.33 acre is on block.
Tungbhadra Steel Products is offering one over 80-acre property in Bellary, Karnataka for sale.
As many as nine properties, including land and other assets, of Instrumentaion Ltd are up for sale. Hindustan Cables Ltd’s eight properties are being offered. There are two properties in the national capital.
One is 1,100 sq ft property of Hindustan Cables at Ranjit Singh Block in Asian Games Village, while another is 716 sq mt property at Scope Complex Building.
Last year, NBCC had said that it would manage, maintain and protect the land assets of sick CPSEs and shall be paid fee for the same till it is disposed off.
NBCC had said that it will, in consultation with CPSE concerned, prepare development plan of each land parcel and invite expression of interest and offer for purchase of land at the prevailing circle rate/acquisition cost from all government entities. NBCC will be paid 0.5 per cent of the value realised from disposal of land, subject to a maximum of Rs 1 crore in each case.