The government-run Centre for Management Development (CMD) has reported that 18 Public Sector Units (PSUs) in the State are facing closure.
The reported move indicated that the government's intervention in making them profitable has not been effective. The LDF's policy was to make PSUs profitable instead of downing their shutters.
The State Budget for the financial year 2024-25 presented in the Assembly on Monday, January 5, proposed encouraging private capital investments in several sectors. The proposal has raised doubt about whether the government would ignore the public sector.
The Department of Finance has taken a stand that the PSUs should find revenue to fund their functioning. Though the government has been financially supporting the KSRTC, it has repeatedly reminded the public service provider to raise revenues to stand on its own. The repeated reminders, many felt, indicated a change in the government's approach.
KSRTC (Rs 1,521 crore), Kerala Water Authority (1,312 crore), Pension Fund Ltd (Rs 1,043 crore), KSEB (Rs 1,023 crore and SupplyCo (Rs 190 crore) are the top five loss-making entities.
Incidentally, the State Beverages Corporation, which used to claim the first or second slot on the list of profit-making institutions, has dropped to eighth place. It had lagged only during the peak COVID-19 period.
KSFE (Rs 351), Minerals and Metals (Rs 85 crore), Travancore-Cochin Chemicals (Rs 67 crore), KSIDC (Rs 64 crore), Backward Classes Development Corporation (Rs 47 crore) and Pharmaceuticals Corporation (Rs 42 crore) topped the list of profit-makers.
The PSUs in Kerala have been employing 1.29 lakh people, and the cumulative investments in them would come to Rs 90,948 crore, an increase of 11.54 per cent. The revenue from sales has been pegged at Rs 40,774 crore, nine per cent up from the earlier financial year. The profit from 67 PSUs increased 23 per cent to Rs 2,028 crore.
The PSUs have contributed Rs 16,863 crore under various heads to the State government and Rs 970 crore to the Union government in 2022-23.
- Kerala currently has 149 PSUs, which would come down to 131 after the closure of 18 units.
- The number of profitable PSUs came down to 57 from 58, while the loss-making PSUs, too, saw a dip to 59 from 66. Other PSUs have not submitted the accounts either completely or partially.
PSUs facing closure
- Kerala Premo Pipe Factory
- Electronics and Electricals, Kanjicode
- Keltron Counters
- Keltron Power Devices
- Keltron Rectifiers
- Kerala Garments
- Kerala State Wood Industries
- Kunnathara Textiles
- Kerala Asbestos Cement Factory
- Kerala Housing Development Finance Corporation
- Kerala High-Speed Rail Corporation
- Pratheeksha Bus Shelters Kerala
- SIDCO Mohan, Kerala
- Sidkel Televisions
- Vanchinad Leathers
- Ashwas Public Amenities Kerala
- School Teachers and Non-Teaching Corporation
- Kerala Special Refractories