The Samikhsya Bureau
NEW DELHI: The Union Cabinet, chaired by the Prime Minister Narendra Modi, has approved the closure of Handicrafts and Handlooms Export Corporation of India Limited (HHEC).
The Corporation was a Government of India undertaking under the administrative control of the Ministry of Textiles.
There are 59 permanent employees and six Management Trainees serving in the Corporation.
All the permanent employees and Management Trainees will be given an opportunity to avail the benefit of a Voluntary Retirement Scheme (VRS) as per norms laid down by the Department of Public Enterprises, the Ministry has explained.
The approval will benefit the Government exchequer in reducing recurring expenditure on salary and wages of sick CPSE which is not in operation and earning no income.
The Corporation has been continuously incurring losses since financial year 2015-16 and not earning sufficient income to meet its running expenses. There is little scope for its revival, necessitating closure of the Company, the Cabinet felt.