The State-owned PSUs will be revived under a five-year plan to be implemented by the Pinarayi Vinayan-led Government.

Revival of the ailing Public Sector Units in the State was one of the major promises made in the LDF’s election manifesto.

This is good news for the PSUs, which have been languishing under the policy of total neglect of the erstwhile Oommen Chandy-led United Democratic Front(UDF). In its eagerness to promote a pro-corporate, private sector-friendly policy, the Chandy Government had caused even some of the profit-making PSUs to slip into losses.

The Government’s intent to revive the PSUIs was announced by Industries Minister E P Jayarajan in the State Assembly. As part of the plan, the PSUs will soon have professional and powerful managements.

The Government has already set the ball rolling by inviting applications from managing directors who can nurse back to health the ailing PSUs in the State.

Experts attribute the decline of the public sector units to lack of professional management, corruption, globalization and failure to diversify.

That the former UDF Government had neglected the PSUs is clear from the fact that 8 out of the 18 PSUs which had made profit during the previous LDF regime, had slipped into losses after the Congress-led UDF Government assumed power in the state.

The Industries Minister assured the Assembly that the government would not allow the public sector units to collapse. Amy attempt to loot public money will not be tolerated, promised Mr. Jayarajan.

According to a report tabled in the Assembly, as many as 53 PSUs had incurred losses amounting to Rs 889 crore during the last financial year. For instance, while the Kerala State Road Transport Corporation (KSRTC) suffered a loss of Rs 621.28 crore, the Kerala State Civil Supplies Corporation incurred a loss of Rs 98.34 crore.

Among the top profit-making PSUs are Kerala State Beverages Corporation (Rs 220.59 crore), Kerala State Financial Enterprises (Rs 209.48 crore), Kerala Financial Corporation (Rs 68.81 crore), Kerala State Industrial Development Corporation(Rs 32.18 crore), Kerala Transport Development Finance Corporation (Rs 19.80 crore), Malabar Cements (Rs 19.45 crore) Kerala State Construction Corporation (Rs 17.95 crore), Kerala State Backwards Classes Development Corporation (Rs 16.03 crore), Kerala State Development Corporation for SC and ST (Rs 16.10 crore) and Pharmaceuticals Corporation Kerala (Rs 14.13 crore).

The top loss-making PSUs are Kerala State Electricity Board (Rs 1272.90 crore), Kerala State Road Transport Corporation (Rs 621.28 crore), Kerala Water Authority (Rs 457.84 crore), Kerala State Civil Supplies Corporation (Rs 98.34 crore), Transformers and Electricals Kerala (Rs 33.16 crore), Kerala State Cashew Development Corporation (Rs 32.79 crore), Kerala Minerals and Metals (Rs 24.78 crore), Travancore Titanium Products (Rs 24.25 crore), Kerala State Textile Corporation (Rs 24.08 crore) and Kerala State Housing Board (Rs 17.59 crore). (IPA Service)