The Hindu Business Line : Reforms process stays on course in AP

THE economic reforms process, set in motion in the State by the Telugu Desam Government, appears to continue unhindered under the present Congress (I) Government.

Sending out signals that it is not anti-reforms, especially in respect of the ailing co-operative sugar mills, the new Government has expressed the view that revival of sugar factories is the primary objective, whether it is achieved through a joint venture operation or privatisation. According to the Implementation Secretariat of the State Public Enterprises Department, the new Government is of the view that revival of factories will put a severe strain on the scarce resources. The recent high-level review meeting chaired by the Chief Minister, Dr Y.S. R Reddy, took note of the fact that proposals for privatisation of a significant number of sugar units were in final stages.

"Over the years, consensus has evolved over economic reforms with governments owing allegiance to different political hues adopting the reforms agenda, out of necessity or choice," the new Principal Secretary of Andhra Pradesh Public Enterprises Department and the Chairperson of Implementation Secretariat, Ms Janaki R. Kondapi, said in a newsletter published by her Secretariat.

Justifying the need for reforms process, she said the Left Front-led West Bengal Government too has embarked on an enterprise reforms programme and has evolved social safety net programme akin to the one followed by Andhra Pradesh.

The Bengal Government has identified 18 enterprises in its first phase of the enterprise reforms, also funded by assistance from DFID that part finances the Andhra Pradesh Public Enterprise Reforms Programme (APERP).

She was of the view that the APERP has raced ahead of targets and was seen as a leader in this arena and a role model for other State Governments. The Union Government too had noted the significant achievements of the Andhra Pradesh Government in this area. As per the statistics compiled by the Union Government, Andhra Pradesh topped the list of States in carrying out public enterprise reforms followed by Orissa, Uttar Pradesh, Karnataka and Kerala.

Of the total 90 State level public enterprises identified for reforms, the process has been completed in 55 units. Of these, 22 have been closed, 12 privatised and disinvestment carried out in 9 enterprises in two phases of the APERP. Of the remaining 35 units, five are in advanced stage of reforms and options studies for 23 are to be taken up for decisions by the Government. For seven units, the reforms process is under way, she said.

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