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.

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