Government puts JV-exit move on fast track

KOLKATA: The state government on Thursday put PSU restructuring and move to exit joint ventures on fast track and made it clear that it is serious about reducing flab.
Chief secretary Maloy Dey has asked all the state PSUs that might undergo restructuring to complete pending accounting work up to September 2017 within a month. For JV disinvestment, decision was taken to appoint a panel of valuers through RFP (request for participation route).These decisions were taken at a meeting called by the chief secretary at Nabanna on Thursday.
A cabinet decision was taken in February to restructure 46 state PSUs.
On Thursday, the state government reviewed the progress of proposed restructiring the PSUs. It was found that of the 46 PSUs, 10 have finalised the accounts work while the rest are yet to update their papers.
The state government is adopting two strategies for PSU restructuring — merging the weak PSUs with strong ones or dissolve them if it is just a signboard company. The basic reason was to improve operational efficiency. “The amalgamation will result in better economic control, increased financial strength and flexibility and enhance the ability of the amalgamated entity to undertake large projects, thereby contributing to enhancement of future business potential,” an industry department official said.