Handlooms Export Body HHEC On Verge Of Closure

New Delhi: Handicrafts & Handlooms Exports Corporation of India Ltd (HHEC), a public sector enterprise under the Ministry of Textiles, has entered the final round of shutdown. HHEC has asked its creditors the proof of their respective claims against itself.

HHEC has informed the creditors to submit the necessary documents to its registered office in Janpath, New Delhi, on or before November 21. Each claim should provide full details of the nature of the debt, the amount claimed, and any relevant documentation to substantiate the claim, official sources told Bizz Buzz.

HHEC was established in 1958 as Indian Handicrafts Development Corporation Ltd with the twin objectives of export promotion and trade development of handicraft and handloom products. It was renamed as The Handicrafts & Handlooms Exports Corporation of India Limited (HHECIL) in 1962.

The public-sector company had continuously been suffering losses since 2015-16. Eventually, its business operations came to a standstill. As it became commercially unviable, the Union Cabinet in March 2021 decided to shut it down. Post-closure activities of HHEC are being carried out as per the extant guidelines of the Department of Public Enterprises, which is under the Ministry of Finance.

Since the government decision to shut down HHEC, there has been little activity in it. For instance, its website still mentions that Smriti Irani is the Textiles Minister, even though she left it in July 2021.

HHEC’s website shows that its heyday was 2000-01, when its profit after tax soared to Rs6.03 crore; it paid a dividend of Rs2.36 crore. The last time the handicrafts PSE earned a profit was in 2015-16 - Rs1.07 crore - though it did not pay any dividend.

The website gives financial figures for the next three financial year- continuous losses. The net worth of the company was not mentioned. HHEC announced a voluntary retirement scheme, which closed on April 23, 2021.