Public Enterprises Department

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Keeping in view the successful implementation of Phase – I Programme, Phase – II Programme has also been drawn and approved by the Government.

Phase – II Action Plan presents the classification of Public Enterprise and sequence for the review of Public Enterprises. The order of priority and the order in which the option studies / Action Plans will be prepared by the Implementation Secretariat with the help of expatriate Consultants is at Annexure – A. The enterprises included in Phase – II Action Plan have been classified into the following 6 categories :

  1. The enterprises which prima facie have ceased to have any relevance in the post liberalisation scenario;

  2. Enterprises, which are engaged in manufacturing and trading activities where private sector has already significant presence;

  3. Enterprises that Government considers, for any specific reasons, need priority for privatisation or restructuring;

  4. Enterprises that have both commercial and social obligations;

  5. Enterprises whose products are not available in the private sector ; and

  6. Large labour intensive enterprises that have high social and political costs in terms of redundancy and where considerable preparatory work will be required for retraining and redeployment.

The study on each enterprise will review all relevant aspects and make specific recommendations as to what method should be followed for privatisation or restructuring to get optimum results. All possible options for privatisation such as sale of business, sale of assets, strategic alliance, division of business before privatisation, placing the company on stock exchange etc., will be considered.

The Implementation Plan for Phase II Public Enterprise Reforms is based on the intention to privatize / restructure / wind-up 15 enterprises per year. Studies and /or Action Plans will be completed for each enterprise so that the proposed action plan for each enterprise may be presented to the Cabinet Sub Committee for approval.

PEs which are not included in Phase – II, but to whom VRS will be applied are at Annexure – B.

Implementation of VRS & SSNP:

In order to improve operational efficiency, financial health and cost effectiveness of the enterprises, VRS implementation is a general requirement independent of / without reference to any study as it is a felt need. Hence, 15% of existing manpower of those PEs that are labour intensive, are taken for VRS implementation over a 5 year period and 30% of existing manpower for all the other enterprises which have social obligations. On this basis the VRS costs inclusive of ex-gratia, gratuity and encashment of un-availed earned leave are estimated at Rs. 1475 crores.

Requirement of funds under SSNP has been estimated at Rs. 40.25 crores.Public Enterprise Department of Andhra Pradesh state Government is an independent wing with the responsibility of monitoring the health of SLPE's as well as the privatization/restructuring of the enterprise. the privatization /restructuring activity is handled by a separate wing of PED known as Implementation Secretariat.


Appendix A - Time Table for Option Studies / Action Plans

Year / Sl.No.

Enterprise



2001



Co-operatives Category II

1

Sri Raja Rajeswara Co-op Spinning Mills Ltd.,
Sircilla.

2

Karimnagar Co-op Spinning Mills Ltd.

3

AP Co-op Spinning Mills Federation Ltd.,( Spinfed)




Corporate Category II

4

Godavari Fertilisers and Chemicals Ltd. (GFCL)




Corporate Category III

5

AP State Financial Corporation (APSFC)

6

AP Industrial Dev Corporation Ltd. (APIDC)




Corporate Category IV

7

AP Housing Board

8

AP Health and Med. Housing. Infrastructure Dev.
Corpn.

9

AP State Police Housing Corporation Ltd.

10

AP Technology Services Ltd.



2002



Corporate Category I

11

AP State Non-resident Indian Inv. Corpn. Ltd.
(ANRICH)

12

AP Electronic Dev Corporation Ltd. (APEDC)




Co-operatives Category I

13

AP State Co-op Consumers Federation Ltd.
(FEDCON)




Corporate Category II

14

AP State Warehousing Corporation

15

AP Co-op Oil Seed Growers Federation Ltd.
(OILFED)

16

Sri Krishna Devaraya Co-op Oilseeds Growers
Union Ltd.

17

Sri Vijayavardhini Co-op Oilseeds Growers Union
Ltd.

18

AP Dairy Dev. Corporation Ltd.

19

AP Dairy Dev. Co-op Federation Ltd. (APDDCF)

20

Krishna Dist. Co-op Milk Producers Union Ltd.
Vijayawada.

21

Chitoor Dist. Co-op Milk Producers Union Ltd.
Chittoor.

22

Kurnool Dist. Co-op Milk Producers Union Ltd.
Nandyal

23

Nellore Dist. Co-op Milk Producers Union Ltd.
Nellore.

24

Nizamabad Co-op Sugar Factory Ltd.

25

West Godavari Co-op Sugars Ltd.

26

The Chittoor Co-op Sugars Ltd.

27

Kovvur Co-op Sugar Factory Ltd.

28

Sri Venkateswara Co-op Sugar Factory Ltd.

29

Amadalavalasa Co-op Sugars Ltd.

30

Anakapalli Co-op Sugars Ltd.

31

NVR Co-op Sugars Ltd.

32

Palair Co-op Sugars Ltd.

33

Cuddapah Co-op Sugars Ltd.




Co-operatives Category III

34

AP State Handloom Weavers Co-op Society Ltd.
(APCO) - study for restructuring




Corporate Category IV

35

AP State Seeds Dev Corpn. Ltd. - study for
restructuring

36

AP State Film Television and Theatre Development
Corpn. Ltd.

37

Leather Industries Dev Corpn of AP (LIDCAP) -
study for restructuring

38

AP Foods



2003



Co-operatives Category II

39

AP State Co-op Rural Irrigation Corpn Ltd

40

The Hyderabad Agricultural Co-op Association
(HACA)

41

The Federation of Sericulturists and Silk Weavers
Co-op Societies Ltd. (SERIFED)




Co-operatives Category IV

42

AP Rural Ele. Supply Co-op Society, Kuppam

43

AP Rural Ele. Supply Co-op Society, Analapalli

44

AP Rural Ele. Supply Co-op Society, Jogipet

45

AP Rural Ele. Supply Co-op Society, Kadiri (E)

46

AP Rural Ele. Supply Co-op Society, Kadiri (W)

47

AP Rural Ele. Supply Co-op Society, Sirisilla

48

AP Rural Ele. Supply Co-op Society, Chipurpalli

49

AP Rural Ele. Supply Co-op Society, Raichoti

50

AP Rural Ele. Supply Co-op Society, Atmakur

51

AP Sahakara Vignana Samithi Ltd.


Corporate Category V

52

Non-conventional Energy Dev Corp of AP (NEDCAP)
– study only

53

AP Forest Development Corporation Ltd.




Co-operatives Category V

54

AP State Co-op Marketing Federation Ltd.
(MARKFED)



2004



Corporate Category II

55*

Associated Cement Companies Ltd.(ACC)

56*

Bakelite Hylam Ltd.

57*

Hyderabad Industries Ltd.

58*

Sirpur Paper Mills Ltd.

59*

Tata Engineering & Locomotive Company Ltd.
(TELCO)




Co-operatives Category II

60

AP Co-op Housing Societies Federation Ltd.
(HOUSEFED)




Co-operatives Category V

61

AP State Co-operative Union

62

AP State Co-operative Joint Farming Federation

63

AP State Co-operative Labour Contract Societies
Federation




Corporate Category V



64

AP Fisheries Corporation Ltd.

2005



Co-operatives Category V

65

AP State Fishermen Co-op Societies Federation
Ltd.




Corporate Category II

66*

Vazir Sultan Tobacco Company Ltd. (VST)

67*

Andhra Pradesh Paper Mills Ltd.

68*

Nagarjuna Fertilisers and Chemicals Ltd. (NFCL)

 

* Disinvestment of these enterprises where GoAP has minority shareholding is dependent on Stock Exchange performance. The disinvestment may therefore be accelerated or deferred depending on share price performance

Appendix - B Enterprises not included in Phase II Action Plan of PE Reforms

Sl. No.

Enterprise

1

A.P.Tourism Development Corporation Ltd.

2

A.P.State Trading Corporation Ltd.

3

A.P.State Housing Corporation Ltd.

4

A.P.State Civil Supplies Corporation Ltd.

5

A.P. Beverages Corporation Ltd.

6

A.P.State Minorities Finance CorporationLtd.

7

A.P.Industrial Infrastructure Corporation Ltd.
(APIIC)

8

A.P.Mineral Development Corporation Ltd.

9

A.P.State Road Transport Corporation (APSRTC)

10

Singareni Collieries Company Ltd.

11

Sri Vijaya Visakha Dist. Co-op Milk Producers
Union Ltd.

12

Nalgonda – R.Reddy Dist. Co-op Milk Producers
Union Ltd.

13

Prakasam Dist. Co-op Milk Producers Union
Ltd.

14

A.P State Federation of Co-op Sugar Factories
Ltd.(SUGARFED)

15

Chodavaram Co-op Sugars Ltd.

16

Etikoppaka Co-op Agricultural & Industrial
Society Ltd.

17

Thandava Co-op Sugars Ltd.

18

Sri Vijayarama Gajapati Co-op Sugars Ltd.

19

A.P.State Co-op Bank Ltd.

20

A.P.Girijan Co-op Coffee Plantation
Development Corporation Ltd.

21

A.P.Girijan Co-op Corporation Ltd.

22

A.P.Vikalangula Co-op Corporation

23

A.P.Geetha Parisramika Sahakara Arthika
Sankshema Samstha

24

A.P.ST Co-op Finance Corporation Ltd.

25

A.P.SC Co-op Finance Corporation Ltd.

26

A.P.BC Co-op Finance Corporation Ltd.

27

A.P.Women Co-op Finance Corporation Ltd.

28

A.P.Washermen Co-op Societies Federation Ltd.

29

A.P.Nayeebramins Co-op Societies Federation
Ltd.