Kerala provides aid to revive ailing PSUs

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

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

If the government is 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 the bank representatives has been called for August 30 to discuss the modalities and guidelines for the 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 this assistance.

Announcing several measures to streamline the working of the PSUs in the state, Mr Kareem said that each PSU will now have to send a monthly ''performance report'' to the industries department, detailing among other things the targets set for the period and the production achieved by the unit.

He also exhorted the 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 in the units.

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

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

UNI