The Union Cabinet chaired by the Prime Minister Narendra Modi has approved the closure of Handicrafts and Handlooms Export Corporation of India Limited (HHEC), a government of India undertaking under the administrative control of the Ministry of Textiles.
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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 approval will benefit the Government exchequer in reducing recurring expenditure on salary/wages of sick CPSE which is not in operation and earning no income.
All the permanent employees and Management Trainees serving in the Corporation 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.