The centre which has received approval to sell its entire 95.38 per cent stake in Scooters India (SIL) ,is now mulling disinvestment in these two ailing companies. The Department of heavy industries has already formulated a framework for the outright sale of these two sick units ,which are considered beyond redemption by the government.
The sick units have been a heavy burden on the government's finances for several years, as they have continuously been in losses for many years. HMT Bearings reported a net loss of Rs 15.31 crore in 2009-10, while the net loss of the Tyre Corporation of India was Rs 14.67 crore in 2009-10.
HMT Bearings, which was incorporated in 1964, is a wholly owned subsidiary of HMT limited. The Hyderabad based PSU is a manufacturer of ball and roller bearings. TCIL, which is based in Kolkata, deals in production, marketing and distribution of automotive tyres. The government owns 97 percent in HMT.