The Union Cabinet on Tuesday approved the closure of Handicrafts and Handlooms Export Corporation of India Limited (HHEC) which is an undertaking of the Indian government and comes 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," informed a statement issued by the cabinet.
"The approval will benefit the government's exchequer in reducing recurring expenditure on salary and wages of sick Central Public Sector Enterprises (CPSEs) which is not in operation and earning no income," it said.
"The corporation has been continuously incurring losses since the financial year 2015-16 and not earning sufficient income to meet its running expenses. There is little scope for its revival, necessitating the closure of the company," the statement added.