Treasury curbs leave state PSUs gasping for breath

For instance, state-run Keltron has a cumulative credit of about Rs 250 crore by various agencies, including state police department. 

THIRUVANANTHAPURAM: The ailing public sector in the state is gasping for breath with the state on the verge of a worst financial crisis.

According to sources, the Finance Department has imposed undeclared treasury curbs even when the industry is going through a tough period due to the economic slowdown. 

As there are only five months left in the current fiscal, the finance department has released only about 20 per cent of the budget allocation of around Rs 299 crore set aside for the public sector.

 Further, the crisis is about to take a turn for the worse when the payments to various public sector units from various government agencies and departments are held-up by the treasury owing to the financial crisis.

For instance, state-run Keltron has a cumulative credit of about Rs 250 crore by various agencies, including state police department. 

But the payments made to Keltron, although not fully, by various state-run agencies are being held up by the treasury due to the financial crisis.

 This will not only affect the functioning of the state-run PSU, but also slow down its growth and target it set for each fiscal. 

Sources from the Public Sector Restructuring and Internal Audit Board (RIAB) confirmed that the treasury payment dues to various public sector units comes to Rs 150 crore for the current fiscal, which is at various stages. 

The RIAB has also reportedly directed the public sector units to take up the payment issue at their own level with the Finance Department and treasury though internal liaisoning.


Since there are only five and a half months left in the current fiscal, the PSUs in the state will not be able to meet the target set for the current fiscal. 

Last year, the state had cut the spending of various departments by 20 per cent. Yet, the Industries Department had received only about 48 per cent of the budget allocation.

Related Stories

No stories found.
The New Indian Express
www.newindianexpress.com