New Delhi, Aug 23 (IANS) The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved the Railway Ministry's proposal to close the Bharat Wagon and Engineering Co Ltd (BWEL).
According to the government, 626 employees of BWEL will benefit from the voluntary retirement scheme to be offered at the 2007 pay scale.
"The government will have to provide an one-time grant off Rs 151.18 crore towards severance package and for clearing the current liabilities of the company," an official statement said.
The government said this measure would stop the flow of financial support from public funds to carry on the operations of sick or loss making BWEL.
The BWEL continued to post poor physical and financial performance for more than 10 years despite financial assistance and other support provided by the Railway Ministry.
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