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Textiles Ministry favours disinvestment of HHEC

Disinvestment Commission recently recommended sale of Govt's entire shareholding to a strategic buyer following the ministry's suggestion.

business Updated: Nov 10, 2003 16:24 IST

The Union Textiles Ministry has favoured the disinvestment of Handicrafts and Handloom Export Corporation of India (HHEC).

"Though we have recommended HHEC to be disinvested, we will keep supporting it till it gets divested," Textiles Minister Syed Shahnawaz Hussainsaid on Monday, after receiving from HHEC the dividend of Rs 2.76 crore for 2002-03.

The Disinvestment Commission recently recommended the sale of the Government's entire shareholding to a strategic buyer following the ministry's suggestion to this effect.

HHEC chairman K K Sinha said: "This is the third consecutive year that HHEC has paid a dividend of 20 per cent. In the last six years, we have paid a cumulative dividend of Rs 9.69 crore on a paid-up capital of Rs 13.82 crore."

The company has been continuously making profits despite difficult phases, Sinha said.

Set up in 1958 as Indian Handicrafts Development Corp to undertake handicrafts and handloom exports, the public sector undertaking was rechristened HHEC, merged with the State Trading Corporation, and again demerged in 1991.

The company, which has been making profits since 1992, except 1995-97, has also undertaken imports of gold.

Hussain also said the Government has taken a number of measures to give a fillip to the industry, which includes increased subsidy to the powerloom industry.

The forthcoming Asian Textiles Conference, slated to be held from December 1, would try to address a number of issues relating to the sector, he said.

First Published: Nov 10, 2003 16:24 IST