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

New Delhi’s Indo-Pacific strategy enters a new phase

India appears to be investing fresh dynamism in its Indo-Pacific strategy. At the time when the US, under president Donald Trump, has adopted a conciliatory approach towards China and has changed the name of America’s Indo-Pacific Command to just Pacific Command, India has quietly moved towards con

CAG flags major fiscal lapses in Maharashtra

Maharashtra`s fiscal management has come under sharp scrutiny after the Comptroller and Auditor General (CAG) of India, in its State Finances Audit Report for 2024-25, flagged significant budgetary inefficiencies, accounting irregularities, understatement of key fiscal indicators and widespread governanc

The health sector research we are not doing

Some neglect is loud. This kind is quiet. It sits in research never commissioned, data never collected, questions never asked. In South Asia, that quiet has let the region’s worst health problems stay understudied, underfunded, and out of sight of those who could act.  

Study flags accessibility and last-mile challenges on Mumbai Metro Aqua Line

Mumbai Metro Line 3 (Aqua Line), the city`s first fully underground metro corridor and one of its largest public transport investments, represents a major engineering achievement and has been widely welcomed by commuters. However, the overall commuter experience continues to be constrained by accessibili

Centre intensifies preparedness as El Niño threat looms

Amid uncertainty in the southwest monsoon due to the potential impact of El Niño, the government is addressing the situation with comprehensive preparedness, a clear strategy, and strong ground-level action. While challenges remain, the entire system has been activated in advance and is working proa

India is crossing a climate threshold

On June 28, Delhi recorded a maximum temperature of 41.3°C, four degrees above the seasonal normal. But the “feels like” temperature, which factors in humidity, showed more than 51°C. What the body experienced was very different from what the thermometer recorded.  India`





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter