The Cabinet Committee on Economic Affairs on Wednesday, approved the closure of the Bihar-based Bharat Wagon and Engineering Company limited (BWEl) - a Central Public Sector Enterprise (CPSE) under Ministry of Railways.
In all, 626 employees of BWEl will be benefitted from the voluntary retirement scheme to be offered at 2007 pay scale, the Government said adding it will have to provide one time grant off 151.18 crore towards severance package and for clearing the current liabilities of the company.
This measure will stop flow of financial support from public funds for carrying on the operations of sick/loss making BWEl resulting in savings for the Government, it said.
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 continues 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,
the Government statement said.