Kerala sets apart Rs 40 crore for revival of PSUs

Thiruvananthapuram, Jun 23: Asserting that separate revival schemes were needed for each public sector undertaking in the state, the Kerala government today announced Rs 40 crore for the revival of state run companies.

Presenting the revised budget for 2006-2007 in the State Assembly, Finance Minister T M Thomas Issac said the PSUs in the state could be revived with a small budgetary assistance if a scientific and time-bound package was prepared.

He said if a sick PSU could run profitably, the government would convert its liabilities into shares and also take initiative for one-time settlement of the bank loans. The Public Sector Restructuring and Internal Audit Board would be strengthened to give necessary assistance regarding this and also the help of other Management experts would be sought.

He said a Public Enterprises selection Board would be constituted to make the managements of the PSUs more professional.

Mr Issac said as a first step of reviving the PSUs, the ailing Kerala State Drugs and Pharmaceuticals (KSDP) Limited has been given Rs three crore.

He said the state government was preparing a plan for reviving KELTRON, for which Rs ten crore has been set apart for the company.

UNI