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Regarding the Handicrafts and Handlooms Export Corporation of India Limited (HHEC), consider the following statements:
1. The Union Cabinet has approved the closure of Handicrafts and Handlooms Export Corporation of India Limited (HHEC).
2. It was under the administrative control of the Ministry of Finance.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Regarding the Handicrafts and Handlooms Export Corporation of India Li...
The Union Cabinet has approved the closure of Handicrafts and Handlooms Export Corporation of India Limited (HHEC), a Government of India undertaking under the administrative control of the Ministry of Textiles.
  • 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.
  • The approval will benefit the Government exchequer in reducing recurring expenditure on salary/wages of sick CPSE which is not in operation and earning no income.
  • All the permanent employees and Management Trainees serving in the Corporation 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.
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Most Upvoted Answer
Regarding the Handicrafts and Handlooms Export Corporation of India Li...

Explanation:

Statement 1:
- The Union Cabinet has indeed approved the closure of Handicrafts and Handlooms Export Corporation of India Limited (HHEC).
- The decision was taken due to continuous losses incurred by the corporation over the years.

Statement 2:
- The Handicrafts and Handlooms Export Corporation of India Limited (HHEC) was actually under the administrative control of the Ministry of Textiles, not the Ministry of Finance.
- The Ministry of Textiles is responsible for the promotion and development of the handloom and handicraft sector in India.

Therefore, the correct answer is option A) 1 only.
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Regarding the Handicrafts and Handlooms Export Corporation of India Limited (HHEC), consider the following statements:1. The Union Cabinet has approved the closure of Handicrafts and Handlooms Export Corporation of India Limited (HHEC).2. It was under the administrative control of the Ministry of Finance.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?
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