KOCHI: Of the 40 Public Sector Undertakings (PSUs) in the state, 13 have turned profitable within 10 months after the LDF Government came to power, Industries Minister A C Moideen said on Saturday.
“The change in fortunes of the PSUs in the state is the result of the policies being adopted by the government,” the Minister told reporters here. He said the revival of the PSUs was one of the priorities of the LDF Government.
“We brought in several measures to make it a reality. The priority was to set up an efficient management team and to take the employees into confidence. This resulted in the PSUs coming up with a green balance sheet,” he said.
Moideen said in Ernakulam district, the Travancore Cochin Chemicals Ltd posted a record profit of `6 crore last fiscal owing to the measures adopted by the government.
“By making 13 PSUs profitable, we could reduce the total loss of the public sector companies. During 2015-16, the total loss of PSUs under the Industries Department was `131.60 crore. However, it dipped to `71.34 crore in the 2016-17 fiscal,” he said. The import policy, disinvestment and negligent approach of the Union Government had led to the poor performance of other PSUs in the state, he said.
“It was the Union Government’s policy decision to dilute 25 per cent of the share of the Cochin Shipyard Ltd. Also, steps are being taken to privatise FACT, while the Hindustan Newsprint Ltd is in crisis owing to the exemption of import duty of newsprint,” he said.
The Minister said the government had set aside `270 crore in the budget for reviving PSUs in the state.“The government aims to create an investment-friendly atmosphere in the state and it has been decided to convert 5,000 acres of land exclusively for the industrial purposes,” he said.
Moideen said the LDF Government had taken steps to improve the production of textile mills from 11.8 per cent to 30 per cent.
“We have constituted a committee to submit a proposal for revamping the mills. By promoting textile products and providing job opportunities in the handloom sector through the ‘free uniform to school students’ scheme, the government will regain the lost glory of traditional textile business in the state,” he said