NEW DELHI: The Union Cabinet on Tuesday decided to shut down the loss making Handicrafts and Handlooms Export Corp. of India Ltd. (HHEC), and offer voluntary retirement to all its 65 employees.
“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," a Cabinet statement said.
HHEC is a government of India undertaking, and is under the administrative control of the textiles ministry. The government said the move will "benefit the government exchequer in reducing recurring expenditure on salary/wages of sick CPSE, which is not in operation and earning no income."
The Corporation has been incurring losses since financial year 2015-16, and has not reported sufficient revenue to meet its expenses. "There is little scope for its revival, necessitating closure of the company," as per the statement.
“Looking at the declining financial position of the Corporation, the Ministry of Textiles is contemplating closure of HHEC and administrative Ministry has recommended for closure of HHEC as per DPE guidelines for closure of sick and loss making CPSEs," according to a HHEC website post by its chairman and managing director.
“However, considering the pending decision of the cabinet, Annual Accounts of the Corporation for the financial year 2017-18 has been prepared on the basis of ‘Going concern’. The management is looking forward to the directions of the Government with respect to status of the Corporation for formulating strategies to go ahead," as per the website post, dated 18 December, 2018.
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