GUWAHATI, Jan 22— The Committee on Fiscal Reforms (COFR) has identified 16 State Public Sector Undertakings (PSUs) for immediate disinvestment for their ‘accumulating huge losses, eroding their net worth completely and leaving no economic relevance under the present scenario’. It also called for disbanding of four PSUs. The PSUs which are named for immediate disinvestment, include STATFED, Assam State Textile Corporation, Assam State Weaving and Manufacturers Corporation, Cachar Sugar Mills Ltd., Assam Spun Silk Mills Ltd, State Fertiliser & Chemicals Ltd, Assam Polytex Ltd, Assam Syntex Ltd, Fertichem Ltd, Assam Conductors & Tubes Ltd, Nagaon Coop Sugar Mills Ltd, Assam Coop Sugar Mills Ltd, Assam Coop Spinning Mills Ltd., Swahid Kushal Konwar Samabay Sutakol, Assam Small Industries Development Corporation Ltd and Assam Tea Corporation.
It also suggested winding up of the Assam State Transport Corporation if the reform measures fail to improve its condition within six months. The COFR, however, recommended measures for revitalisation of thirty other PSUs. But if the revitalisation measures ‘should fail and no progress is shown within two years, each such PSU should also be included in the list meant for immediate disinvestment’, the COFR report said. But, the COFR said, ‘in the interest of transparency and in order to ensure avoidance of corruption’, the State Government should set up a three-member Disinvestment Commission/Committee. The State Industry Minister should be chairperson of the Committee. The other two members should be— one current opposition party member in the Assembly, and, a respectable member of the public, the COFR report said. It has also indicated the functions of the Disinvestment Commission/Committee, which should have been provided with the secretariat by the Public Enterprise Department.
The COFR in its report, however, maintained that the State Government should give operative freedom to the profit making and border line PSUs and if the seven PSUs— Assam State Electricity Board, Assam State Transport Corporation, Assam Tea Corporation, Assam Industrial Development Corporation, Assam Small Scale Industries Development Corporation, Assam Financial Corporation and the Assam State Housing Board can be revived profitably, the problem of their losing the networth would be substantially sorted out. It is worthmentioning here that except the AIDC, all the other six PSUs have lost their networth. It also suggested that the State Government should pay up immediately wherever dues are outstanding, in terms of receivables or subsidy, enter into MoUs and give operative freedom with no Government interference, in the case of the Assam Gas Company, ARTFED, Assam Cooperative Jute Mills (which are earning profits) and Assam Petrochemicals Ltd, Assam Text Book Production and Publication Corporation, Assam Polyester Cooperative Society and the Assam State Warehousing Corporation (which are the marginal cases in matters of earning profit).
All these units should be free to choose professional management, while in the case of the Assam Petrochemicals, a study needs to be undertaken to reorient the production process. The State Government can consider joint venture arrangements, giving 51 per cent to the private sector, the COFR said in its report. In the case of the Assam Plains Tribes Development Corporation Ltd, Assam State Development Corporation for SC Ltd, Assam State Development Corporation for OBC Ltd and Assam Minorities Development and Finance Corporation Ltd, which have welfare implications, but facing severe financial crisis, a ‘line of reasoning’ should be there in treating them. There should not be any financial lendings, the aim should be promoting entrepreneurial skills. More than half of their 500 employees should be reallocated elsewhere and monetary lending should be carried out only by the AFC, AIDC and the NEDFi, said the COFR report. Emphasising that the ASEB should remain one single unit, the COFR report suggested that the ASEB should immediately set up three functional strategic business units— of generation, transmission and distribution and each of these units should aim at attaining self-sufficiency over a reasonable period of time.
PSUs to be disbanded: The COFR report suggested that because of their facing severe financial crisis and having, together, an accumulated loss of over Rs 26 crore, the Assam Government Construction Corporation, Assam Police Housing Corporation, Assam Fishery Development Corporation and the Assam State Minor Irrigation Development Corporation can be disbanded.
Delayed disinvestment: The Assam Agro-Industries Development Corporation, Assam Seeds Corporation, Assam Livestock and Poultry Development Corporation and Assam Textbook Production and Publication Corporation need State Government’s immediate support and attention. These units are incurring losses for quite sometime. In fact, these units can be revitalised if State Government’s dues are cleared, Government purchases are compulsorily routed through them, tax incentives are given and professional management provided with, the COFR report said, adding, these organisations can be considered for disinvestment after they have turned the corner and have started making profit.