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

Report of India’s G20 Task Force on Digital Public Infrastructure released

The final ‘Report of India’s G20 Task Force on Digital Public Infrastructure’ by ‘India’s G20 Task Force on Digital Public Infrastructure for Economic Transformation, Financial Inclusion and Development’ was released in New Delhi on Monday. The Task Force was led by the

How the Great War of Mahabharata was actually a world war

Mahabharata: A World War By Gaurang Damani Sanganak Prakashan, 317 pages, Rs 300 Gaurang Damani, a Mumbai-based el

Budget expectations, from job creation to tax reforms…

With the return of the NDA to power in the recently concluded Lok Sabha elections, all eyes are now on finance minister Nirmala Sitharaman’s full budget for the FY 2024-25. The interim budget presented in February was a typical vote-on-accounts, allowing the outgoing government to manage expenses in

How to transform rural landscapes, design 5G intelligent villages

Futuristic technologies such as 5G are already here. While urban users are reaping their benefits, these technologies also have a potential to transform rural areas. How to unleash that potential is the question. That was the focus of a workshop – “Transforming Rural Landscape:

PM Modi visits Rosatom Pavilion at VDNKh in Moscow

Prime minister Narendra Modi, accompanied by president Vladimir Putin, visited the All Russian Exhibition Centre, VDNKh, in Moscow Tuesday. The two leaders toured the Rosatom Pavilion at VDNKh. The Rosatom pavilion, inaugurated in November 2023, is one of the largest exhibitions on the histo

Let us pledge to do what we can for environment: President

President Droupadi Murmu on Monday morning spent some time at the sea beach of the holy city of Puri, a day after participating in the annual Rath Yatra. Later she penned her thoughts about the experience of being in close commune with nature. In a message posted on X, she said: