The Hindu Business Line : AP: Public enterprise reform process kicks up debate

The phase III of the public enterprise reform process of the Andhra Pradesh Government has come in for intense debate with a senior opposition member quoting a World Bank report and alleging it would lead to about 65,000 job losses.

Reacting to this allegation, the Chief Minister, Dr Y.S. Rajasekhara Reddy, and the State Finance Minister, Mr K. Rosaiah, have reiterated that there would not be any downsizing, and the effort would be to strengthen their structure and improve functioning.

The issue assumed importance with the State CPI (M) Secretary, Mr B.V. Raghavulu, stating that the Government had planned to lay off about 60,000 employees in two large corporations — the Singareni Collieries Company Ltd and the AP State Road Transport Corporation.

According to the Public Enterprise Department, the Government Order passed earlier this month only seeks to reform the enterprises and strengthen their functioning but does not intend to lay off people.

Dr Reddy, in a statement, said that his Government does not contemplate downsizing of organisations and the public enterprises department will assist the balance 29 corporations, which have now been taken up for study to ensure that maximum results accrue to these organisations and its employees.

A statement from the Chief Minister's Office clarified that for the sake of budgeting, 30 per cent staff were shown in certain big organisations where employees will have the option to opt for voluntary retirement scheme again aimed at strengthening the undertaking.

Option studies will be taken up by the Public Enterprise Department and sent to the corporation with suggestions for streamlining and improvement. In the process, those corporations may take decisions on those studies in whichever way it suits them.

Addressing a press conference here today, Mr Rosaiah said that there would be no privatisation of Singareni and APSRTC, and if need be the Government order passed earlier would also be amended.

Meanwhile, trade unions and employees' organisations have threatened stir if the Government goes ahead with the reform process.

The Government, defending their stand, quoted the policies initiated which had resulted in turning around the loss making RTC which registered a record Rs 140 crore profit during the first quarter this fiscal.

Alongside, the power sector too is witness to a turn around, with the APTransco and other utilities on course to profitability.