Kerala gearing up to revive sick PSUs

The Dept has framed guidelines for implementing the scheme, keeping in mind that some of the units are running at a loss.

Published: 01st July 2013 08:43 AM  |   Last Updated: 01st July 2013 08:43 AM   |  A+A-

Efforts being taken by the state government for reviving loss-making Public Sector Undertakings (PSU) and granting productivity-based incentives for employees are gathering steam. The industries department has framed guidelines for implementing the scheme, keeping in mind that some of the industrial units are running at a loss. Pay revisions for employees who are part of these loss-making industries were not being implemented for the past several years.

Industries Minister P K Kunhalikutty said that there are around 24 companies in the state which have been making profits continuously. Pay revisions were implemented in these companies. “However, there are a section of employees in the PSUs who are yet to get reasonable pay as the companies they are part of in are making a loss. To overcome this, the companies will be revived and incentives will be given to employees based on the profit that each company makes”, the minister said.  Around 50 per cent of the profit accrued will be given as incentives to employees. Twenty per cent will be utilised for the welfare of employees in each company. Finance minister K M Mani had already announced `15 crore in the 2013-14 budget for the revival of industries.

Loss-making companies have been asked to submit a report on revival plans aimed at making profit. Some of the companies have already submitted proposals in this regard and after detailed evaluation and discussions, the revival packages will be implemented. There are around 15 PSUs in the State which are making loss causing financial strain to the government. The proposal for incentives based on profit is expected to make employees more productive.

The revival package will include enhancing production capacity, reducing expenditure, aggressive marketing and diversification. A committee has already started discussions on the proposals for packages submitted by the companies. These packages will not be applicable for profitable, as pay revisions have already been implemented in these companies.

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