Centre Fast-Tracks ₹2,000 Crore HMT Revival Plan Package; Union Cabinet Approval Expected Soon

Political Bureau | Bangalore Mail
August 31, 2026

BENGALURU — In a major push toward strengthening domestic manufacturing capacity, the Union Government has fast-tracked a comprehensive plan to revive state-owned engineering major Hindustan Machine Tools (HMT). The revival proposal, which involves an investment package of over ₹2,000 crore, is currently under consideration and is expected to be presented to the Union Cabinet for final approval shortly.

The initiative marks a decisive step by the government to resurrect one of India’s historically significant public sector enterprises (PSEs).

Kumaraswamy Submits Proposal to Finance Ministry

According to sources familiar with the matter, Union Minister for Heavy Industries H.D. Kumaraswamy has submitted the proposal for the ₹2,000 crore HMT revival plan package directly to Union Finance Minister Nirmala Sitharaman.

The proposal aims to modernize existing infrastructure, scale up operational efficiency, and repurpose key industrial assets owned by HMT across the country.

“The move aligns with the government’s broader strategy to rehabilitate strategically important public-sector industrial assets while driving domestic manufacturing capabilities,” stated a senior official familiar with the developments.

Key Priorities of the ₹2,000 Crore HMT Revival Package

HMT, once regarded as the backbone of India’s industrial and machine-building sector, has faced severe operational and financial bottlenecks in recent decades. The newly structured package focuses on leveraging the company’s existing assets rather than creating new infrastructure from scratch.

 Asset Optimization: Efficient utilization of existing land, machinery, and factory floor capacity.

 Capability Enhancement: Upgrading core engineering technologies to align with modern manufacturing requirements.

 Financial Restructuring: Infusing fresh capital to clear operational liabilities and stabilize working capital.