Kerala announces financial aid scheme for ailing PSUs

Kochi, Aug 21 (UNI) The Kerala Government today announced a scheme to give one-time financial assistance to revive ailing public sector undertakings in the state if they came up with viable technology upgradation and restructuring programmes.

Addressing a state-level convention of Central and State PSU chief executives here, Kerala Industries Minister Elamaram Kareem said sick PSUs wanting to avail of this assistance, which would be a combination of grant-in-aid and loan, should submit bankable projects to the government.

If the government was convinced that the unit would be Economically viable after restructuring, it would facilitate assistance to it through banks, he added.

Mr Kareem said a meeting with bank representatives would be held on August 30 to discuss modalities and guidelines for assistance.

The Minister said the government had agreed to the banks' condition that a monitoring committee be set up to review the performance of the PSUs availing of help.

Announcing several measures to streamline PSU working, Mr Kareem said each PSU would have to send a monthly 'performance report' to the Industries Department, detailing among other things targets set for the period and production achieved by the unit.

He exhorted PSU chief excutives to introduce production-oriented incentive schemes, not to lag behind in statutory payments, streamline overtime payments, focus on research and development efforts, undertake energy audits and enforce discipline.

'You (chief exeuctives) have the power to issue show cause notices. You do not have to refer every matter to the Minister or secretary,' he said.

To reduce trade union rivalries, a referendum should be held to recognise the real representatives of the workers.

MORE UNI ARC AA 1541