KOCHI: State-owned engineering major Hindustan Machine Tools (HMT) is likely to hand over five acres of land at its Kalamassery unit to the Kerala State Electricity Board (KSEB) as part of efforts to settle long-pending electricity arrears of around Rs 30 crore.
The proposal came up for discussion during a meeting between HMT chairman Rajesh Kohli and KSEB chairman Minhaj Alam in Thiruvananthapuram on Wednesday. KSEB finance director Biju R was also present at the talks. Officials said the discussions marked the beginning of a formal process to resolve the long-standing dispute over electricity dues dating back to 2008.
HMT Kalamassery owes the power utility about `30 crore, including interest. After issuing multiple notices demanding payment, KSEB disconnected power supply to the unit on December 23, triggering widespread criticism and concerns over the future of the loss-making PSU. Following the intervention of Industries Minister P Rajeeve, electricity supply was restored on December 24 as an interim measure.
As part of the proposed settlement, HMT has indicated that it is willing to go ahead with an earlier understanding to transfer five acres of its land to KSEB in lieu of the arrears. In this connection, KSEB officials from Thiruvananthapuram and Kalamassery carried out a site inspection of the HMT land on Thursday. Kohli said steps are being taken to expedite HMT’s revival package, with ministerial-level discussions held in New Delhi to secure support for the company’s long-term survival.