The Hindu Business Line : Kerala to offer funds for revival of sick PSUs

The Government has also come out with various schemes including the Best CEO award. A worker or a team would receive a special reward for achieving increase in production or inventing a new method.

THE INDUSTRIES MINISTER, Mr Elamaram Kareem, inaugurating the convention on `Synergising PSUs' in Kochi on Monday. Mr T.O. Sooraj (centre), Director of Industries and Commerce, and Mr T. Balakrishnan, Principal Secretary, Industries and Commerce, are also seen. - K.K. Mustafah

Kochi , Aug. 21

The State Government is contemplating one-time settlements by providing necessary funds in association with banks and financial institutions as part of restructuring the State-owned sick public sector undertakings, the State Industries Minister, Mr Elamaram Kareem, has said.

PSUs that wanted to avail themselves of the assistance should come up with bankable projects and the Government will help in getting funds, the Minister said while inaugurating the State-level convention on `Synergising PSUs' here on Monday.

The Government is convening a meeting with bank officials and CEOs of sick PSUs on August 30 to work out the modalities and guidelines for assistance. The banks, had however, asked for setting up a monitoring committee for those PSUs which availed financial assistance for their revival.

He said the Industries Department would monitor the performance of these companies and would be asked to submit monthly reports at the secretary and ministerial levels on their performance. It will also demand monthly revision and production target from them.

The Government, according to the Minister, would like to review the existing policies in the PSU in order to make them profit making. CEOs of these organisations should also adopt and implement the policies of the Government. They must fix long-term and short-term targets for production to avoid loss in future.

Reward schemes

A common procurement system for the purchase of raw materials would be adopted between PSUs.

The Government has also come out with various schemes including the Best CEO award for the best performing CEO in a PSU. Likewise, a worker or a team in a company would receive a special reward for achieving increase in production or inventing a new method. Moreover, one PSU will be given a `symbolic reward' in a year for its better performance, he said.

Speaking on the occasion, Mr T. Balakrishnan, Principal Secretary (Industries and Commerce), pointed out that there are 113 PSUs in the State of which 55 are under Industries Department. Majority of them are loss-making, as they are not exposed to competitive economy. There is a need to restructure PSUs and identify areas of co-operation among them for their mutual benefit.

The meet is organised to initiate measures to streamline the working of State-owned PSUs and to have a networking to offer critical mass for the customisation of their services. This will also enable information and knowledge networks in the areas related to raw material procurements, market, technology, input providers etc, he said.

More Stories on : Sick Units | PSU | Industrial Policy | Kerala

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