The Hindu : Even profit-making PSUs being privatised, says VS

Online edition of India's National Newspaper
Sunday, May 11, 2003

Southern States

Southern States - Kerala

Even profit-making PSUs being privatised, says VS

By Our Special Correspondent

THIRUVANANTHAPURAM May. 10. The Leader of the Opposition, V. S. Achuthanandan, today said the Antony Government was stealthily going ahead with its programme of privatising even profit making State public sector units (PSUs).

In a statement here today, he said this was being done on the basis of the recommendations of the Chowdhary Commission, appointed by the Government to revamp the State PSUs.

In doing so, the Government had rebuffed even the UDF sub-committee for public sector (which had opposed the line taken by the Chowdhary Commission).

Mr. Achuthanandan alleged that the Government's move, while selling off the profit making units, was to close down as many other PSUs as possible.

This move was very much in tune with the Union Government's policy of surrendering the Central PSUs, including those functioning in strategic areas, to the private sector, he said.

He questioned the logic of this approach by citing statistics relating to the contribution the PSUs were making to the State exchequer, besides describing the service some of them were rendering to the public.

The total turnover of the State PSUs in 2001-02 came to the order of Rs. 6,115.21 crores, registering an increase of 49 per cent over the turnover in 1997-98.

In 1997-98, the State PSUs had contributed Rs. 641.22 crores by way of taxes and levies to the Central and State exchequer.

This went up to Rs. 1,379.67 crores in 2001-02. The contribution to the State exchequer alone was Rs. 912 crores that year.

He said that, as per the statistics for 2001-02, as many as 1,24,661 persons were employed in the State PSUs.

In addition to this, lakhs of people were being indirectly employed by these institutions.

There were 36 profit-making State PSUs in 2001-02 and they brought a total profit of Rs. 259.68 crores that year, he addedd.

In reality, a major share of the total losses from the State PSUs came from those categorised as public utilities.

The Kerala State Electricity Board, the Kerala Water Authority, the Kerala State Road Transport Corporation, the Civil Supplies Corporation and the Housing Board were the main public utility services operating on loss.

He said these loss-making public utilities were rendering an unavoidable service to the people, especially the weaker sections of society.

Their performance should not be evaluated purely on the basis of their profitability.

The Government had the duty to ensure such basic services to the citizens.

However, the Antony Government was trying to either privatise or close down even such public utilities, he alleged.

Mr. Achuthanandan said it was not as though the State PSUs were beyond redemption.

The profit-making ones could be made more profitable and the loss-making ones brought round to show profits through better attention to their management, the Oppsition leader said.

Various trade unions had, from time to time, submitted several proposals to the Government on how this could be achieved.

He said the UDF sub-committee for public sector too had reportedly submitted certain proposals in this direction.

Neglecting the option of revamping the State PSUs by retaining them in the public sector itself was not only dangerous, but also against the State's interests, the Opposion leader said.

Printer friendly page
Send this article to Friends by E-Mail

Southern States

Stories in this Section

Nelliampathy tribal land issue resolved

Marad: more arrested

'Future of Indian Navy bright'

Thrissur Pooram celebrated with fervour

AGM to broadbase stir: Janu

No political pressure: DGP

Sree Narayana global meet begins

SNDP aiming to take over JSS

Kozhikode Collector denies charge

Even profit-making PSUs being privatised, says VS

Nayanar asks CM to quit