The Union Cabinet chaired by Prime Minister Narendra Modi has approved the closure of the Handicraft and Handloom Corporation of India Limited (HHEC). This corporation was working under the control of the Ministry of Textiles under an undertaking of the Government of India. With this approval, the treasury will benefit in reducing the increasing expenditure in the salary head of central public sector sick enterprises which do not run and do not earn income.
The corporation has 59 permanent employees and 6 management trainees. All permanent employees and management trainees will be given the opportunity to avail the Voluntary Leave Retirement Scheme (VRS) as per the modalities prescribed by the Department of Public Enterprises.
Employees will get VRS opportunity
#Cabinet approves closure of Handicrafts & Handlooms Export Corporation of India Ltd. Approval will benefit Govt exchequer in reducing recurring expenditure on salary of sick CPSE which is not in operation & earning no income#cabinetdecisions
– PIB India (@PIB_India) March 16, 2021
The corporation is running continuously for 6 years
Since FY 2015-16, the Corporation has been continuously in deficit and is not earning enough income to meet its operating expenses. It is very unlikely to revive it, so it is necessary to shut down the company.