Cabinet nod to closure of Handicrafts and Handlooms Export Corporation

The Cabinet approved the closure of Handicrafts and Handlooms Export Corporation of India (HHEC), a government undertaking under the administrative control of the textile ministry.

Employees in the corporation — 59 permanent and six management trainees — will be given an opportunity to avail voluntary retirement scheme, according to norms laid down by the Department of Public Enterprises. The approval will benefit the exchequer in reducing recurring expenditure on salary/wages of a sick central public sector enterprise (CPSE) which is not in operation and earning no income.

The corporation has been continuously incurring losses since 2015-16 and not earning sufficient income to meet its running expenses. There is little scope for its revival, necessitating closure, an official statement said.