The Union Cabinet, chaired by Prime Minister, Narendra Modi, has approved the closure of the Handicrafts and Handlooms Export Corporation of India (HHEC), a government of India undertaking under the administrative control of the Ministry of Textiles.
There are 59 permanent employees and six 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 approval will benefit the government exchequer in reducing recurring expenditure on salary/wages of sick Central Public Sector Enterprise (CPSE) which is not in operation and earning no income.
The Corporation has been continuously incurring losses since FY16 and not earning sufficient income to meet its running expenses.