New Delhi (NVI): The Union Cabinet, chaired by the Prime Minister Narendra Modi today approved the closure of Handicrafts and Handlooms Export Corporation of India Limited (HHEC) and offer voluntary retirement scheme to all its employees.
The corporation is a central public sector undertaking (CPSE), under the administrative control of the Ministry of Textiles.
There are 59 permanent employees and 6 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 Union Cabinet said in a statement.
It added that the approval will benefit the government exchequer in reducing recurring expenditure on salary or wages of sick CPSE which is not in operation and earning no income.
HHEC 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 statement said.