The State-owned public sector undertakings will have “powerful and professional” management soon as part of the government’s aim to make all PSUs profitable in five years.
Applications have been invited for appointing new managing directors capable of steering the loss-making PSUs profitable, Minister for Industries E.P. Jayarajan said in the Assembly on Thursday.
Globalisation, lack of exports, inability to diversify, overdependence on imports, lack of professional management and vision, and corruption are hampering the growth of many PSUs.
The Minister said there were 18 PSUs making profit during the previous LDF regime. This had come down to just 10 when the new LDF government took over in 2016.
The Public Sector Restructuring and Internal Audit Board (RIAB) had commenced a review of the PSUs and restructuring of the units would be taken up once the review was completed.
The government is in receipt of complaints against top officials of some PSUs, the Minister said, adding some managing directors had already been removed. The Principal Secretary, Industries, was looking into the complaints and a Vigilance inquiry would be ordered on obtaining reports.
“The government will not allow collapse of the PSUs and will not entertain any attempts to loot public money,” Mr. Jayarajan told the House.
Through the restructuring of the PSUs, the aim of the government is to take up product diversification, expansion of the units, and to generate more employments opportunities for the youth, the Minister said.
The KSIDC and KINFRA had been entrusted with the job of identifying plots in rural areas for industrial development. The industrial units remaining closed in some panchayats would be handed over to entrepreneurs.
As per a Comptroller and Auditor General (CAG) report tabled in the Assembly, 53 PSUs in the State have incurred a loss of Rs.889.89 crore during last financial year.
The KSRTC incurred a loss of Rs.508.22 crore, Kerala State Cashew Development Corporation Rs.127.95 crore, and the Kerala State Civil Supplies Corporation Rs.89.11 crore during the period.
LDF line of growth
Aim is to make all PSUs profitable in five years
Only 10 units profitable in 2016
53 PSUs incurred loss of Rs.889.89 crore last fiscal: CAG
