Kerala gets pros to turn PSUs around
IPS officers running state public sector units (PSUs) and political appointees holding key posts there are soon going to be passé in Kerala.
By TNN |
THIRUVANANTHAPURAM: IPS officers running state public sector units (PSUs) and political appointees holding key posts there are soon going to be pass�� in Kerala, where the sagging fortunes of PSUs are witnessing a revival with the induction of professional managers.
���We have introduced a system to induct professional managers in PSUs, and the results are already showing after just six months of operations under the guidance of the experts���, Kerala industry minister Elamaram Kareem told ET.
So far, eight professionals have been inducted into Kerala���s 110 PSUs, and more are on the way as the system of appointing senior executives merely on the basis of seniority or political leanings, is being phased out.
���We have put in place a proper system for the entire procedure. There is a selection committee to shortlist and choose candidates based on a selection procedure that includes an interview. The appointments are made on the basis of a rank list provided by the selection committee���, Mr Kareem said. Presently, there are 12 candidates in the rank list, who are soon to be inducted into different PSUs.
However, one hitch is related to the salary structure, with PSUs having their inherent difficulties in offering salary packages in line with those in the private sector. ���We are trying to overcome this, and performance contracts are also being brought in���, Mr Kareem said. The interventions are showing results, with eight PSUs making a profit in 2007-08 as against losses in the previous year. These include Steel Industries Kerala, Travancore Cements, Keltron Crystals and Steel Complex Ltd.
Mr Kareem said only 12 PSUs were making profit when the Left Democratic Front government took over two years ago, and that their number had grown to 22 after a year and to 27 after two years.
Malabar Cements leads the list of the 27 profit-making PSUs with a profit of Rs 36 crore for 2007-08, followed by the Kerala State Industrial Development Corporation, which had a profit of Rs 23 crore.
���We have introduced a system to induct professional managers in PSUs, and the results are already showing after just six months of operations under the guidance of the experts���, Kerala industry minister Elamaram Kareem told ET.
So far, eight professionals have been inducted into Kerala���s 110 PSUs, and more are on the way as the system of appointing senior executives merely on the basis of seniority or political leanings, is being phased out.
���We have put in place a proper system for the entire procedure. There is a selection committee to shortlist and choose candidates based on a selection procedure that includes an interview. The appointments are made on the basis of a rank list provided by the selection committee���, Mr Kareem said. Presently, there are 12 candidates in the rank list, who are soon to be inducted into different PSUs.
However, one hitch is related to the salary structure, with PSUs having their inherent difficulties in offering salary packages in line with those in the private sector. ���We are trying to overcome this, and performance contracts are also being brought in���, Mr Kareem said. The interventions are showing results, with eight PSUs making a profit in 2007-08 as against losses in the previous year. These include Steel Industries Kerala, Travancore Cements, Keltron Crystals and Steel Complex Ltd.
Mr Kareem said only 12 PSUs were making profit when the Left Democratic Front government took over two years ago, and that their number had grown to 22 after a year and to 27 after two years.
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Malabar Cements leads the list of the 27 profit-making PSUs with a profit of Rs 36 crore for 2007-08, followed by the Kerala State Industrial Development Corporation, which had a profit of Rs 23 crore.
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