Cabinet approves closure of Handicrafts and Handlooms Export Corporation

New Delhi, March 17: Union Cabinet led by Prime Minister Narendra Modi has approved the closure of Handicrafts and Handlooms Export Corporation of India Limited (HHEC). 59 permanent employees and 6 Management Trainees are serving in the Corporation.

 

 

HHEC is a central public sector undertaking (CPSE) under the administrative control of the Ministry of Textiles. The government said in the release, "All the permanent employees and management trainees will be allowed to avail the benefit of a Voluntary Retirement Scheme (VRS) as per norms laid down by the Department of Public Enterprises."

 

 

 

According to the center, this approval will benefit the government exvhequer in reducing recurring expenditure on salary and wages of the sick case which is not in operation and earning no income.

 

 

HHEC has been incurring losses since the financial year 2015-16 and is not earning sufficient income to meet its running expenses. There is little scope for its revival, necessitating the closure of the company.

 

The decision to close HHEC in line with the government's strategic disinvestment policy, under which CPSEs in non-strategic sectors will be privatised or closed.