HMT Kalamassery may hand over land to KSEB to settle power dues

Hindustan Machine Tools (HMT), Kalamassery, may hand over a parcel of land equivalent to the arrears of electricity charges —estimated around ₹30 crore — to the Kerala State Electricity Board (KSEB) as a possible solution to the long-standing dispute between the two entities.

Reportedly, an understanding to this effect was reached at a meeting between KSEB chairman and managing director Minhaj Alam and HMT chairman Rajesh Kohli in Thiruvananthapuram on Wednesday (January 7). Subsequently, HMT identified a plot, which was inspected by officials of the KSEB, including members of its land management unit, on Thursday (January 8).

“We found the land satisfactory, though necessary verification will have to be done to ensure that it is free of liabilities and other legal complications. A property other than the 27 acres earmarked for the proposed judicial city was shown to us. While we have received verbal assurance that the identified land is free of excess land obligations, this needs to be verified,” said KSEB sources.

The issue over arrears blew up last month after the KSEB disconnected power to HMT following a disconnection notice issued on December 8. The connection, however, was restored on Christmas eve after the intervention of Ministers K. Krishnankutty and P. Rajeeve.

In 2007-08, the KSEB and HMT had reached an agreement to clear actual dues of ₹14 crore for ₹11 crore under a one-time settlement arrangement. Later, the KSEB sought five acres of HMT’s land, based on which HMT paid ₹8.50 crore and withheld ₹2.50 crore towards the potential land deal. However, the land transaction never materialised. Subsequently, the KSEB scrapped the one-time settlement and recalculated dues, taking ₹9 crore as the principal amount along with a penal interest of ₹21 crore.

Though Union Minister for Heavy Industries H.D. Kumaraswamy had promised to revive the HMT Kalamassery unit during a visit in August 2024, no progress has been made since. At a meeting with trade union representatives on December 10, the Minister had said that the revival would not be possible unless a previous Central Cabinet decision to disinvest HMT units was rolled back, which, he noted, would take no less than three months.