AP may appoint liquidator for electronics corp

HYDERABAD: The Andhra Pradesh government is in the process of scripting the ‘swan song’ for the ailing Andhra Pradesh Electronic Development Corporation (APEDC). It is planning to appoint a liquidator next month. APEDC will be the fourth unit for which the government is appointing a liquidator this financial year.
It has already done so for three other corporations this financial year such as Andhra Pradesh Non-Resident Indian Investment Corporation (Anrich), Andhra Pradesh Federation of Consumer Co-operative Societies (Fedcon), and Andhra Pradesh Fisheries Development Corporation (APFDC).
The government is appointing the liquidators based on the option studies carried out by Adam Smith Institute (ASI) of London — the government’s advisor on PSU reforms — in association with Implementation Secretariat (IS) that has been created to oversee the privatisation programme.
According to government officials, the ASI and IS have recommended liquidating the four corporations, as there is little scope for either privatising or restructuring them.
They said the option study for another ailing corporation; Andhra Pradesh State Seeds Development Corporation (APSSDC) is over and the recommendations have been forwarded to the cabinet sub-committee, headed by the finance minister.
The other members of the sub-committee include the ministers for major industries like sugar, textiles, and co-operation.
“The recommendation about APSSDC will be implemented, once it gets the cabinet sub-committee’s nod,� they said. In addition, the options studies are being carried out for major corporations such as Andhra Pradesh Industrial Development Corporation (APIDC), Andhra Pradesh State Financial Corporation (APSFC), and Andhra Pradesh Housing Board (APHB). While ASI and IS are conducting the studies for the first two, Ernst and Young (E&Y) are doing them for the latter.
According to the officials, enthused by the successful implementation of the Phase I of the state PSU reform programme last year, in which it restructured/privatised/wound up 11 corporation, the government is pressing ahead with the second phase programme with more vigour.
“The government has targeted to carry out the reform process in at least 15 units during the current financial year,� they said.