Kumaraswamy accuses K'taka govt of sabotaging HMT revival with forest notice

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Kumaraswamy accuses K'taka govt of sabotaging HMT revival with forest notice

Synopsis

Just as a special revival package for HMT was reportedly days away from announcement, Karnataka's Forest Department ordered the public sector unit to surrender 430 acres of land valued at ₹15,000 crore. Union Minister Kumaraswamy called it deliberate sabotage — and alleged it is part of a longer pattern of state-backed land encroachment on HMT's Bengaluru holdings.

Key Takeaways

Kumaraswamy accused the Karnataka government of using the Forest Department to obstruct HMT's revival on 6 July .
Bengaluru Urban DCF N.
Ravindra Kumar ordered HMT to surrender 430 acres of land, which he valued at nearly ₹15,000 crore .
Kumaraswamy said a special revival package for HMT was close to announcement, with a key meeting scheduled for the following week.
The Minister alleged 175 acres of HMT land were previously sold under earlier state governments, with multi-storeyed buildings now standing on the land.
HMT is expected to challenge the forest notice in court; Kumaraswamy said the officer lacked jurisdiction to issue the order.
HMT manufactures machinery for space, defence, and research sectors and retains significant overseas demand.

Union Minister for Heavy Industries and Steel H.D. Kumaraswamy on Monday, 6 July accused the Karnataka government of deliberately obstructing the Centre's efforts to revive HMT (Hindustan Machine Tools), alleging that the state had weaponised the Forest Department to derail a special revival package that was close to finalisation. The allegations came after the Bengaluru Urban Deputy Conservator of Forests (DCF) N. Ravindra Kumar issued a notice directing HMT to surrender 430 acres of land, valued by the officer himself at nearly ₹15,000 crore.

The Forest Notice and Its Timing

Addressing an emergency press conference in Bengaluru, Kumaraswamy questioned both the timing and legality of the Forest Department's order. He pointed out that the matter was already pending before a court, making the notice — and its accompanying deadline — a direct interference with ongoing judicial proceedings. 'The matter is pending before the court. At such a sensitive stage, the state government, through the Forest Department, has issued a notice and imposed a deadline. This amounts to interference with judicial proceedings and is contrary to law,' the Minister said.

He further argued that DCF Ravindra Kumar lacked the jurisdiction to issue such a direction. 'Such an order directly interferes with ongoing judicial proceedings. Moreover, the officer has no jurisdiction to issue such a direction. HMT will challenge the order before the court,' Kumaraswamy stated. Notably, the Minister alleged the officer was barely 15 days from retirement when he issued the notice.

Revival Package on the Verge of Announcement

Kumaraswamy said he had been working to secure a special revival package for HMT — a Bengaluru-headquartered public sector enterprise that has been mired in losses for several years. He said a meeting on the proposed package was scheduled for the following week and that a decision was imminent. 'To breathe new life into HMT, I have been making efforts to convince the Prime Minister and the Union Finance Minister to approve a special package. Just when the package was close to being announced, the state government, with malicious intent, got such a notice issued,' he alleged.

The Minister assured HMT employees that the revival would proceed. 'Under the leadership of Prime Minister Narendra Modi, we will revive HMT. We will do it, and no one can stop us,' he said.

Allegations of Past Land Plunder

Kumaraswamy levelled serious allegations of historical land encroachment, claiming that 175 acres of HMT land had been sold under previous state governments and that multi-storeyed buildings and apartment complexes now stand on that land. 'The officer himself has valued this land at nearly ₹15,000 crore. That naturally raises the suspicion that someone has set their sights on this property,' he said. He alleged the plunder continued until he became Chief Minister in 2006, when he ordered a halt to further land sales.

'Under the government of those who promised to turn Bengaluru into Singapore, HMT land was torn apart and devoured like vultures, without the slightest restraint,' he charged, in an apparent reference to the incumbent state administration. He also alleged that other public enterprises — including NGF and Mysore Paper Mills — had similarly been wound down under the state's watch.

HMT's Industrial Legacy and Strategic Importance

The Minister traced HMT's history as one of India's most prominent public sector undertakings, with factories in Kalamassery, Kerala; Hyderabad, Telangana; Pinjore, Haryana; and other locations. He stressed that HMT continues to manufacture machinery for critical sectors including space, defence, and research, and that its machines retain significant overseas demand. 'Once among India's most prestigious and profitable industrial enterprises, HMT is today facing difficult circumstances. Yet, it continues to manufacture machinery for critical sectors,' he said.

This is not the first time HMT's revival has been attempted — the enterprise has been at the centre of restructuring discussions for over a decade, making the current package, if finalised, potentially the most consequential intervention in its recent history. The Centre's next steps and the outcome of HMT's expected legal challenge to the forest notice will determine whether the revival package can proceed on schedule.

Point of View

By an officer weeks from retirement, on land valued at ₹15,000 crore, invites scrutiny regardless of partisan framing. The deeper issue is structural: HMT has been on the edge of revival for years, and every time a package nears finalisation, procedural or political friction intervenes. If the Centre is serious about reviving a strategic manufacturer that still supplies the defence and space sectors, it needs a faster legal and administrative pathway — not another round of press conferences and counter-allegations.
NationPress
6 Jul 2026

Frequently Asked Questions

What is the HMT revival package that Kumaraswamy is referring to?
It is a special financial package being pursued by Union Minister H.D. Kumaraswamy to revive Hindustan Machine Tools (HMT), a Bengaluru-based public sector enterprise that has faced sustained losses for several years. Kumaraswamy said a meeting on the package was scheduled for the following week and a decision was imminent.
Why did Karnataka's Forest Department issue a notice to HMT?
The Bengaluru Urban Deputy Conservator of Forests ordered HMT to surrender 430 acres of land, classifying it as forest land. Kumaraswamy disputed the order's legality, arguing the officer lacked jurisdiction and that the action interferes with ongoing court proceedings on the same matter.
What is the value of the HMT land in question?
According to Kumaraswamy, the forest officer himself valued the 430-acre plot at nearly ₹15,000 crore. The Minister alleged this high valuation raises suspicions about the motives behind the notice.
What action will HMT take against the forest notice?
Kumaraswamy said HMT will challenge the forest department's order before the court. He also warned that the officer who issued the notice would face consequences for what he described as a reckless and jurisdictionally invalid action.
What sectors does HMT still serve, and why does its revival matter?
HMT continues to manufacture precision machinery for India's space, defence, and research sectors, and reportedly retains overseas demand for its machines. Kumaraswamy described it as a strategically important enterprise whose revival would have implications beyond commercial recovery.
Nation Press
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