Loss making Bharat Wagon and Engineering Co. to be shut -Governance Now

Loss making Bharat Wagon and Engineering Co. to be shut

The step of closing the enterprise will stop the flow of financial support from public funds for carrying on its operations

GN Bureau | August 23, 2017

#PSU #Bharat Wagon #BWEL #cabinet #Narendra Modi #severance package

Ministry of railways’ proposal of closing down Bharat Wagon and Engineering Company Limited (BWEL) has been accepted by the cabinet committee on economic affairs, chaired by the prime minister Narendra Modi on Wednesday.

A total of 626 employees of BWEL will benefit from the voluntary retirement scheme to be offered as per the 2007 pay scale. The government will have to provide one time grant off Rs 151.18 crore towards severance package and for clearing the current liabilities of the enterprise.

This measure will stop the flow of financial support from public funds for carrying on the operations of sick/loss making BWEL resulting in savings for the government.

The implementation will be done as per the timelines prescribed in the guidelines issued by Department of Public Enterprises (DPE) on time bound closure of sick/loss making CPSEs.

In view of the continuing poor physical and financial performance of the company for more than 10 years, in spite of financial assistance and other support provided by ministry of railways combined with low probability of its revival in future, Bharat Wagon and Engineering Co. Ltd. is being wound up.

Comments

Other News

‘Oral cancer deaths in India cause productivity loss of 0.18% GDP’

A first-of-its-kind study on the economic loss due to premature death from oral cancer in India by the Tata Memorial Centre has found that this form of cancer has a premature mortality rate of 75.6% (34 premature events / 45 total events) resulting in productivity loss of approximately $5.6 billion in 2022

Days of Reading: Upendra Baxi recalls works that shaped his youth

Of Law and Life Upendra Baxi in Conversation with Arvind Narrain, Lawrence Liang, Sitharamam Kakarala, and Sruti Chaganti Orient BlackSwan, Rs 2,310

Voting by tribal communities blossoms as ECI’s efforts bear fruit

The efforts made by the Election Commission of India (ECI), over last two years, for inclusion of Particularly Vulnerable Tribal Groups (PVTG) communities and other tribal groups in the electoral process have borne fruit with scenes of tribal groups in various states/UTs participating enthusiastically in t

GST revenue for April 2024 at a new high

The gross Goods and Services Tax (GST) collections hit a record high in April 2024 at ₹2.10 lakh crore. This represents a significant 12.4% year-on-year growth, driven by a strong increase in domestic transactions (up 13.4%) and imports (up 8.3%). After accounting for refunds, the net GST

First Magahi novel presents a glimpse of Bihar bureaucracy a century ago

Fool Bahadur By Jayanath Pati (Translated by Abhay K.) Penguin Modern Classics, 112 pages, Rs 250 “Bab

Are EVs empowering India`s Green Transition?

Against the backdrop of the $3.5 billion Production-Linked Incentive (PLI) scheme launched by the Government of India, sales of Electric Vehicles (EVs) are expected to grow at a CAGR of 35% by 2032. It is crucial to take into account the fact that 86% of EV sales in India were under the price bracket of $2