The Indian cabinet recently approved closure of the loss-making Handicrafts and Handlooms Export Corporation of India Ltd (HHEC), a central public sector undertaking (CPSE) under the ministry of textiles. The approval will benefit the government exchequer in reducing recurring expenditure on salary and wages of the sick CPSE, which has no earnings, the government said.
"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 government said in a press release.The Indian cabinet recently approved closure of the loss-making Handicrafts and Handlooms Export Corporation of India, a central public sector undertaking (CPSE) under the ministry of textiles. The approval will benefit the government exchequer in reducing recurring expenditure on salary and wages of the sick CPSE, which has no earnings, the government said.#
HHEC has been incurring losses since fiscal 2015-16 and was not earning sufficiently to meet its running expenses. There was little scope for its revival, necessitating its closure.
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