Oct 20, 1999|
Orissa takes the lead in privatisation
The Orissa government has decided to privatise 36 state-owned enterprises in a phased manner over the next three years. This has been reported by a leading national daily.
The Orissa state government has been setting the pace in public sector reforms. Earlier this year, it privatised its power distribution network. It now plans to dives upto 100% sate in some PSUs. Moreover, the state cabinet has decided against floating new companies in the future.
The government has roped in the UK based Department for International Development (DFID) to assist in the privatisation process. The DFID will help in identifying partners for the various companies being put on the block. It will also rehabilitate the sick units and retrain the surplus and retrenched staff. The DFID is putting forward a grant of Rs 1.3 bn for financing the restructuring the operations. This is in addition to the Rs 1.5 bn being invested by the Orissa government.
The decision to restructure the units and retrain the staff before the sell off is path breaking and will ensure that there is little resistance (from the labour unions) to the move. Moreover, the government would be able to command a better price for the 'restructured' companies that are being put on the block. The move would prove to be a boon for the state finances.
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