Maharashtra government to disinvest in loss-making units

GN Bureau | November 16, 2015




The Maharashtra government has decided to disinvest its assets in seven loss-making public aector wnterprises (PSEs) in the state. At present, there are 55 such PSEs under administrative control of 20 departments.

The seven ailing PSEs in the line of disinvestment are - MAFCO, MELTRON, Maharashtra Land Development Corporation, Maharashtra Textile Development Corporation, and Vidarbha, Marathwada and Konkan Development Corporations.

Principal secretary finance (reforms) Bijay Kumar said that in case of MAFCO, the land owned by it has been given back to the original owners.

The idea of closing down some of the loss-making state PSEs has been on the agenda of governments since 1990.

In 2000, the then government by an Act had set up the Maharashtra Board for Restructuring State Public Enterprises (MBRSE) to decide on disinvesting or restructuring these ailing PSUs in the state. However, in 2007, the Act was scrapped. The MBRSE had then recommended disinvestment and revitalisation of the 11 state PSEs.

An official from the Finance department said that the government at present is undertaking selling off the assets of these state PSEs and returning the land to the concerned government departments.

The staff in such PSEs have either been offered Voluntary Retirement Scheme (VRS) or absorbed by their parent departments, he said.

Out of the 55 loss-making state PSEs, 14 belong to the Industries, Energy and Labour department, six belong to Social Justice department, six belong to Water Resources department and five to Cooperation and Marketing department.

The rest of them belong to Agriculture, Dairy Development, Tourism and other departments. Notably, some of the state PSEs have out-lived their utility.

The Maharashtra Land Development Corporation was set up to develop agricultural land, and through the Maharashtra State Farming Corporation, the government engaged itself in farming and producing crops and vegetables. The government also sold milk through the milk distribution scheme.

Interestingly, BJP Maharashtra Unit president Raosaheb Danve and Chief Minister Devendra Fadnavis had announced appointment of party leaders and workers in PSEs.

The sharing of PSEs between BJP and Shiv Sena is yet to be finalised as both parties have not reached a final conclusion over the sharing formula.

Comments

 

Other News

Mumbai Development Plan annoys activists and experts

Approximately one-eighth of Mumbai’s existing landmass is proposed to be added for development works, especially for housing of low income groups. Maharashtra CM Devendra Fadnavis gave green signal to the 2034 development plan that will make more land available by adding over 3,650 he

My musical journey has been really beautiful: Harshdeep Kaur

Harshdeep Kaur is a playback singer better known for her Sufi renditions. She sings Hindi as well as Punjabi. She sang ‘Ik Onkar’ in Rang De Basanti apart from several other soulful songs. Her track ‘R.I.P.’ composed by AR Rahman was part of Oscar-winner Danny Boyle’s film

BJP lawmakers top the list in hate speech cases

Out of all MPs and MLAs in office, 58 have declared cases related to hate speech. This includes union minister for drinking water and sanitation Uma Bharti along with 14 other Lok Sabha MPs. The list also includes 8 state ministers. A party wise analysis reveals that BJP has the highest numb

After its withdrawal from Meghalaya and Arunachal, is it time to review AFSPA in other areas too?

After its withdrawal from Meghalaya and Arunachal, is it time to review AFSPA in other areas too?

Togadia, Sinha and anti-Modi prejudices masked by empty rhetoric

There is an uncanny similarity in the pathological opposition to prime minister Narendra Modi by two members of the right wing, Pravin Togadia and Yashwant Sinha. They come from a diverse social and political background; yet they share a common strand that shows an unmitigated hatred towards

“We are becoming American digital colonies”

Data is the new oil; and it needs to be protected. In an interaction with Governance Now, Lionel Baraban, CEO of Famoco, talks about how the French tech firm is developing secure business devices to safeguard data against going to other countries. What are the major roles o

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter