The Union Cabinet 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. All the permanent employees and Management Trainees will be given an opportunity to avail the benefit of a Voluntary Retirement Scheme as per norms laid down by the Department of Public Enterprises.
The approval will benefit the Government exchequer in reducing recurring expenditure on salary and wages of sick Central Public Sector Enterprises which are not in operation and earning no income. The Corporation has been continuously incurring losses since financial year 2015-16 and not earning sufficient income to meet its running expenses. There is little scope for its revival, necessitating closure of the Company.