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Karnataka Government Accused of Hindering HMT Revival Efforts

Published July 6, 2026 at 2:55 PM UTC

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In a recent development, Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy, has accused the Karnataka state government of obstructing the revival plans for Hindustan Machine Tools (HMT), a once-prominent public sector enterprise. Kumaraswamy alleged that the state government is using the forest department to claim approximately 430 acres of HMT's land, a move he believes is strategically timed to interfere with ongoing revival efforts.

The controversy began when the Bengaluru Urban Deputy Conservator of Forests issued a notice directing HMT to surrender about 430 acres of land, identifying it as forest land. Kumaraswamy questioned the timing of this notice, especially since discussions for a special revival package for HMT were nearing finalization. He argued that such actions could be seen as interference with judicial proceedings and might benefit vested interests.

Addressing the media, Kumaraswamy stated, "The matter is pending before the court. Issuing such a notice and fixing a deadline at this stage amounts to interference with judicial proceedings." He further emphasized that HMT would challenge the order in court.

The Union Minister highlighted the significance of HMT in sectors like defense, space, and research, noting its continued demand both domestically and internationally. He expressed confidence in the revival of HMT under Prime Minister Narendra Modi's leadership, assuring employees that the revival plans would proceed despite the state government's actions.

Kumaraswamy also criticized the Karnataka government's approach to other central public sector initiatives, such as the Kudremukh Iron Ore Company (KIOCL). He contrasted Karnataka's stance with that of neighboring Andhra Pradesh, where the state government has been more cooperative in attracting industrial investments and supporting revival packages. He questioned, "If the State Government itself creates a hostile environment, how will industries come to Karnataka?"

The revival of HMT has been a topic of discussion for several years. In October 2025, Kumaraswamy announced that the central government was planning to revive both HMT and the Sir M. Visvesvaraya Iron and Steel Plant (VISL). He mentioned that discussions had been held, a report on HMT's revival had been submitted, and technical collaboration possibilities with Japan were being explored. A Detailed Project Report (DPR) was also in preparation to rejuvenate the prestigious HMT factory.

Despite these efforts, the recent actions by the Karnataka government have raised concerns about the smooth implementation of the revival plans. The central government's commitment to revitalizing HMT remains strong, but the situation underscores the challenges of coordinating between central and state authorities to achieve industrial growth and development.

As the matter progresses through legal channels, stakeholders await a resolution that balances the interests of the state government, the central government, and the future of HMT.