The Hindu Business Line : Restructuring plan for Kerala PSUs under review

THE State Government's plan for a comprehensive restructuring of the sick public sector undertakings, which have proved a heavy drag on the State's exchequer, appears to be in for a restructuring itself.

Though the Enterprises Reforms Committee (ERC), constituted by the Government for the purpose some time ago, has since drafted detailed proposals for each of the enterprises and the Government put its stamp of approval on many of them, the whole exercise may now be subjected to a review.

At a meeting with trade union leaders on Wednesday, the Chief Minister, Mr Oommen Chandy, said that privatisation of public undertakings is not the policy of the Government. He made it clear that those PSUs, which were running profitably, would not be privatised.

Even in the case of loss-making enterprises, the Government will help some of them if they could be revived with a one-time infusion of funds. As for the remaining, a decision would be taken after eliciting the views of all concerned, Mr Chandy said.

The ERC has so far forwarded recommendations in respect of 45 enterprises to the Government after closely studying their financial and operational viability.

The Government, on its part, has approved 29 of them in consultation with the State Planning Board.

As it stands, the Government has decided to close down eight units as they have been found beyond redemption by ERC.

The units are Trivandrum Spinning Mills; Kerala soaps and Oils Ltd; Kerala Construction Components Ltd; Keltron Rectifiers; one division each of Kerala Ceramics Ltd; Kerala State Textiles Corporation and Kerala Electricals Company and Metropolitan Engineering Ltd.

In the case of Metropolitan Engineering, the Government has kept the option of allowing the employees to form a co-operative society to run the company.

In all, more than 1,000 employees of these units have so far been brought under the Social Security Net Programme of the Government.

The Government had, meanwhile, advertised inviting expressions of interest from private promoters for acquiring up to 100 per cent stake in five PSUs, namely, Keltron Counters, Kerala State Salicylates and Chemicals Ltd, Trivandrum Plywood Industries, Astral Watches Ltd and Kerala State Detergents and Chemicals Ltd.

More than a dozen promoters had expressed interest in taking over them, according to officials in the Industries Department.

Expressions of interest had also been invited for acquiring between 26 and 45 per cent stake in Transformers and Electricals Kerala Ltd (TELK), in response to which Siemens India has submitted a proposal. It has, however, run into stiff opposition from trade unions.

As per the latest estimates by the Public Bureau of Enterprises, 62 enterprises have accumulated losses to the tune of Rs 4,183 crore and the net worth of 42 has turned negative.