New Delhi, Feb 28 (IANS): The government Friday approved a Rs.136 crore loan to HMT Machine Tools Limited to help the company revive.

"The company is expected to turnaround with the proposed infusion of funds at its head office in Bangalore and its manufacturing units," a statement issued after a meeting of the Cabinet Committee on Economic Affairs (CCEA) said.

Of the total, Rs.75 crore will be used for working capital requirements.

The government also set aside Rs.61.04 crore for implementing the pay revision of 1997.

Apart from providing loan to the cash-strapped comapny, the government waived interest on its loan up to March 31, 2014 of Rs.38.58 crore.

The CCEA also empowered the company's board to increase the retirement age from 58 to 60 years to the extent of 10 percent of the employees retiring in any year.

The company which manufacturers various types of machine tools and printing machines has a work force of 2,806 with manufacturing units located at Bangalore, Pinjore, Kalamassery, Hyderabad and Ajmer.