Government urged to drop ‘move’ to close down two PSUs

Published: 07th December 2012 11:56 AM  |   Last Updated: 07th December 2012 11:56 AM   |  A+A-

CPI Legislature Party leader C Divakaran has urged the government to back out from the alleged move to close down two state PSUs; Kerala State Drugs And Pharmaceuticals (KSDPL), Alappuzha and Kerala United Electrical Limited (Meter Company), Kollam.

He said that the previous LDF Government issued an order on May 15, 2008 asking Kerala Medical Service Corporation to purchase medicines from KSDPL. The order is in effect till March, 2013. Moreover, the government had exempted the company from tender proceedings, Divakaran said.

The Medical Service Corporation had purchased medicine worth Rs 16 crore, Rs 18 crore, Rs 33 crore and Rs 36 crore in the period 2008-09, 2009-10, 2010-11 and 2011-12 respectively, he said.

He said that it was while the KSDPL was working profitably that the government decided not to purchase medicine from there. Now, the company  is facing the threat of closure, he said.

The Meter Company, which is producing electric meters for KSEB, is also facing the threat of closure. Following KSEB’s decision to stop purchase from the company, a stock of 46,000 meters got piled up in the company, Divakaran alleged. He pointed out that the LDF Government had issued orders to purchase 6 lakh meters from the company. Now that order has been cancelled and a new directive has been issued not go for any purchase from the company, he said.

 Divakaran urged the government to intervene in the issue to help save the companies from closure.

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