Plethora of PSUs drain on Keralam; experts suggest rejig for efficiency

Experts suggest merging boards and corporations to avoid duplication, improve efficiency, and reduce expenditure.
Keralam has 150 public enterprises, three development authorities, and eight commissions functioning in different sectors.
Keralam has 150 public enterprises, three development authorities, and eight commissions functioning in different sectors. (Express Illustrations)
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THIRUVANANTHAPURAM: With UDF convener Adoor Prakash coming up against a lack of consultations over key postings, the focus has now shifted to appointments to top posts in boards and corporations. Even as discussions begin on the same, it has brought to light the excessive number of government-run bodies in the state. Going by records, the state has a large network of public enterprises, welfare boards, development authorities, and commissions functioning across departments.

On Wednesday, the state cabinet decided on two cabinet ranks appointments — Administrative Reforms Commission chairman and State’s Special Representative in New Delhi. The government also completed appointments to academies and cultural institutions.

However, the appointments have triggered differences within the Congress, with UDF convenor Adoor Prakash openly alleging a lack of consultation within the UDF.

With appointments to boards and institutions now under way, the crucial question is the relevance and functioning of the bodies. Experts suggest merging boards and corporations to avoid duplication, improve efficiency, and reduce expenditure.

C Veeramani, the director of the Centre for Development Studies, said the constitution of multiple boards, corporations, and cooperative societies leads to duplication of work.

“Having so many government and semi-government bodies neither makes sense nor does good for the state. Most of the time, there is a duplication of work. The state has several welfare boards under various departments, leading to confusions and rising expenditure,” he said, adding that consolidating and functioning as a single body will help in improving the efficiency and saving taxpayers’ money.

Veeramani highlighted that the motive of establishing more boards and corporations is to accommodate people. “Most of the time, there are such intentions and personal interests, either for the politicians or the bureaucrats,” he added.

According to government documents, the state has 150 public enterprises, three development authorities, and eight commissions functioning in different sectors. While the appointments to these bodies are largely political, in many cases retired government officials are also being appointed.

Pointing towards the financial situation of several PSUs in the state, Jiji Thomson, former chief secretary, opined that the boards and corporations in the same department should be brought together.

“There are over 120 PSUs in the state, many of which have overlapping responsibilities. Hardly 25 out of these PSUs are fully operational. Also, only a percentage of the PSUs are profitable. In such a scenario, it is a burden on the state government. So PSUs, federations, and boards in the same department should be brought together and made a single body to avoid multiple and unnecessary appointments,” he said.

Economist B A Prakash is of the view that too many bodies with political appointments lead to the draining of the state’s finances. “Many of these undertakings are in loss, and the government is even lending money to run them. This system leads to wasteful expenditure,” he said.

Overview

  • Public enterprises: 131

  • Commissions: 8

  • Development authorities: 3

  • Welfare boards: 16

    Source - Bureau of Enterprises report and Union government

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