Government to scrap 7 sick PSUs

Almost 12 years ago, the then Maharashtra Board for Restructuring of State Enterprises (MBRSE) had recommended scrapping of ten loss-making Public Sector Undertakings (PSUs) but the Maharashtra government was unable to fully wind up even one of them during this period. Now, the ruling BJP-Shiv Sena government has decided to down shutters on seven PSUs to end recurring losses and reduce the burden on state exchequer.

According to principal secretary, finance (reforms) Bijay Kumar, the seven PSUs to be scrapped include: Konkan Development Board, Vidarbha Development Board, Marathwada Development Board, Maharashtra Electronics Corporation (MELTRON), Maharashtra State Textile Corporation, Maharashtra Land Development Corporation, and Maharashtra Agricultural Development and Fertiliser Promotion Corporation (MAFCO).

Mr Kumar told The Asian Age that the decision to close the seven PSUs will be taken in a meeting scheduled on Monday. “It had been decided to scrap such weak corporations or PSUs but the decision remained pending for the past few years. It is part of financial reforms and will lower financial burden on the state exchequer,” he said.

A senior official from the state finance department said that MBRSE, which was set up by the government in 2003, itself shut down in 2007.

“The quasi-judicial body was replaced by a high-powered committee headed by the state Chief Secretary which now does the same job of reviewing performance of sick PSUs, recommending measures for revival, and if revival is not possible, recommending their closure,” he said.