ANNOUNCEMENT 26 Dec 2013

In December 2013, the government of India announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 13 Aug 2013 | Removal date: open ended
Still in force

Capital injection and equity stakes (including bailouts)

On 26 December 2013, the Indian Cabinet Commitee on Economic Affairs approved to provide financial assistance to eleven Central Public Sector Enterprises under the Department of Heavy Industry, all declared as loss making. The financial support will amount to INR 116.86 crores (USD 18.84 million).
 
The companies in question are Hindustan Cables Ltd., Hindustan Machine Tools (HMT) Ltd., HMT Watches Ltd., HMT Chinar Watches Ltd., Nagaland Pulp& Paper Co. Ltd., Triveni Structurals Ltd., Tungbhadra Steel Products Ltd., Nepa Ltd., HMT Bearings Ltd., Hindustan Photo Films Ltd., and Tyre Corporation of India Ltd. 
 
Previously, on 13 August 2013, these companies (except Tyre Corporation of India Ltd.) have received assistance amounting to a total ofINR 128.26 crores (USD 20.68 million).
 
Additionaly on 10 September 2014, the above stated companies (except Tyre Corporation of India Ltd. and including Heavy Engineering Corporation Ltd.) received an assistance amounting to a total of INR 287.67 crores (~ USD 46 million).
 
The following companies and products have significant sales in the domestic market:
- Hindustan Machine Tools - Tractors
- Nepa Limited: Newsprint paper
- HMT Bearings Ltd.: Tapered/Cylindrical Roller Bearings
- Hindustan Photo Films: Medical/Industrial X-Ray
- Tyre Corporation of India: Automotive Tyres
- Heavy Engineering Corporation
 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.