AP cabinet okays phase II PE reforms

after dilly-dallying, the andhra pradesh cabinet has finally approved the second phase public enterprise reforms programme for restructuring, winding up or sale of assets of 68 units in the next four to five years, about 15 units per annum. it also approved the proposal for divesting the state government's stake in corporate giants like vst, nagarjuna fertilisers and chemicals, and godavari fertilisers and chemicals, besides ap paper mills. the cabinet that gave its nod on december 31, 2001, has, however, kept the remaining 29 units out of the purview of the ii phase programme owing to political sensitivities involved in taking them up due to the social responsibilities they discharge. such units include a p tourism and various corporations that work for the welfare and development of backward classes, minorities, and scheduled castes and tribes. principal secretary, public enterprises department (ped), mr deepak kumar panwar, told et that the 15 units to be taken up this year include the likes of ap state financial corporation (apsfc), ap industrial development corporation (apidc), ap technology services (apts), ap state housing board (apshb), ap state police housing development corporation (apshdc), and ap state warehousing corporation. in addition, two co-operative spinning mills located in sircilla and karimnagar, oilfed, and several units belonging to the dairy development federation situated in hyderabad, krishna, chittoor, kurnool, and nellore districts would also be taken up, he added. mr panwar, who is also the chief of the implementation secretariat (is), a body specifically created with the financial assistance provided by dfid of uk government to monitor and implement the pe reforms in the state, said option studies would be carried out for each of these 15 units to decide on whether to restructure, wind up or to go in for out right sale. the is plans to take the help of professional consultants, most probably from within the country, to undertake the option studies to find out what is the best alternative for each of the 15 units. the department for international development of uk government has agreed to fund the option studies for all the units. therefore, we plan to go ahead and appoint consultants based on the suggestions by adam smith institute (asi), our advisor on pe reforms, he said. as regards divesting the state government's stake in various corporate giants like vst and nfcl, mr panwar said the is would get the studies done by the best consultants available to help the government divest the stake at right time so as to get right value. whether we divest the stake this year or in the coming years, we plan to get the studies done this year, he added.

AP cabinet okays phase II PE reforms

AFTER dilly-dallying, the Andhra Pradesh cabinet has finally approved the second phase public enterprise reforms programme for restructuring, winding up or sale of assets of 68 units in the next four to five years, about 15 units per annum.

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