HMT Kalamassery Struggles Amid Financial Crisis, Workers Go Unpaid

Kochi: Hindustan Machine Tools (HMT), is in the grip of a serious financial crisis at its Kalamassery unit. Once a profitable company, the unit has suffered heavy losses over the past two years, primarily due to a severe shortage of working capital, forcing production cuts and delaying ongoing projects.

The crisis was highlighted at the ‘HMT Samrakshana Sadas’ held on Friday at HMT Junction, Kalamassery, organised by the HMT Protection Committee in coordination with the Centre of Indian Trade Unions (CITU). Workers, who have gone without salaries for more than three months, voiced concerns over the uncertain future of the company.

CITU national secretary K. Chandran Pillai criticised the Union Government’s industrial policies, asserting that the government’s focus on privatisation and inadequate support for strategic public sector units has worsened HMT’s condition.

The HMT Protection Committee pointed out that while the company continues to receive orders, a lack of funds prevents procurement of raw materials and completion of projects. The committee estimated that securing even a 5% share of India’s Rs. 16,000-crore domestic machine tools market could restore the company’s operational stability.

Union leaders also highlighted structural issues, including the reverse auction tender system and the redirection of government orders to MSME units, which have limited HMT’s market share. 

Founded in 1953, HMT has historically played a crucial role in India’s industrial development. Beyond machine tools, the company has manufactured tractors, precision engineering products, and components for defence and aerospace sectors. Despite its strategic importance, the unit has struggled to modernise and compete with private and imported alternatives.

The HMT Workers Union president K.N. Raveendranath, CITU national secretary Deepa K. Rajan, and State secretary K.N. Gopinath also addressed the protesters. Leaders and the workers demanded immediate implementation of the revival package and called for urgent policy interventions to protect the PSU.