CCEA approves closure of Bharat Wagon and Engineering Company
The Cabinet Committee on Economic Affairs (CCEA) has approved closure of Bharat Wagon and Engineering Company Limited (BWEL). BWEL is a Central Public Sector Enterprise (CPSE) under Ministry of Railways (MoR).
Proposal in this regard was forwarded to CCEA by the MoR. The CCEA decision will stop flow of financial support from public funds for carrying on the operations of BWEL resulting in savings for the Government.
CCEA decision comes in view of the continues poor physical and financial performance of the BWEL for more than 10 years, in spite of financial assistance and other support provided by MoR. The decision to wound up BWEL comes after its low probability of revival in future.
Bharat Wagon and Engineering Company Limited (BWEL)
BWEL was incorporated as a CPSE in 1978 after taking over two sick private sector companies – Arthur Butler & Company, Muzaffarpur and Britannia Engineering Company, Mokama. It was engaged in manufacture and repair of wagons. It was having two manufacturing units at Muzaffarpur and Mokama in Bihar.
The administrative control of BWEL was transferred to the MoR from Department of Heavy Industry (DHI) in August, 2008, as approved by the CCEA. The Company was referred to BIFR (Board for Industrial and Financial Reconstruction) in December, 2000 and was declared sick in the year 2002. Since then it remained sick (loss making) company.
Categories: India Current Affairs 2017