Other States - Orissa

Many PSEs present gloomy picture

BHUBANESWAR: Orissa may be ahead of other States in India in terms of attracting investments in past couple of years, but it has more number of defunct and closed public sector enterprises (PSEs) than working ones.

Presenting a written reply to a query in State Assembly here on Friday, State Minister for Public Enterprises Kanak Bardhan Singh Deo said there were 32 workable PSEs compared to 34 non-working enterprises.

In fact, of 32 workable units, 18 PSEs are actually working. Interestingly, many of working PSEs have been incurring losses. They are reportedly on verge of either being closed down or privatised.

Orissa Agro Industries Corporation incurred a loss of Rs. 1.06 crore last fiscal while the monthly expenditure on the establishment touches Rs. 21.26 lakh. Similarly, Kalinga Iron Works Limited reported loss of Rs. 3.43 crore. The monthly expenditure for the PSE was estimated to be Rs. 1.36 crore.

“Of the 32 workable PSEs, 12 units have been identified to be passing through financial crisis. At least 10 such units will be put through restructuring process while two will be privatised,” Mr. Singh Deo said.

Those which will be restructured included Orissa Lift Irrigation Corporation, Orissa Construction Corporation, Orissa State Financial Corporation, Orissa Forest Development Corporation, Orissa Agro Industries Corporation and Orissa Bridge and Construction Corporation.

The two units which are to be privatised are Kalinga Studios Limited and Konark Jute Limited. “While 33 workers have been retrenched in Kalinga Studios last year, the studio will be given on long term lease to a private party and the process is on. Similarly, privatisation process of Konark Jute Limited is under process and under the supervision of company court,” he said. Situation has come to such a pass that decision has been taken to sell assets of 15 public and cooperative enterprises. Disinvestment plans of many PSEs had been finalised.

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