Public Enterprises Department

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What has been done so far?

The history of reforms of P.S.Es in Andhra Pradesh started with the process of restructuring and divestiture of manufacturing enterprises. The process can be traced back to mid 80s. In 1989,   the Government privatized Allwyn Nissan to Mahindras. In 1994, the Refrigerator Division of Hyderabad Allwyn Ltd. was privatized to Voltas Ltd.,   followed by   Hindupur sugar unit of NSL in 1998.   These efforts at privatization were, however, in the nature of adhoc decisions and not a part of deliberate policy of the State.

In 1995, the Government constituted a Working Group with Sri K. Subramanyam, IAS (Retd.) as Chairman.   The Committee examined in detail   working of State Level Public Enterprises and has given its recommendations in respect of thirty State Level Public Enterprises.

Although the Cabinet Sub Committee constituted by the Government to examine the recommendation of the working group, finalized recommendations in respect of 26 PSEs, there was abnormal delay in implementation of the same.

In order to give requisite thrust to the programme of Public Enterprises Reform and privatization the State Government included P.E.Reform as one of the components of the A.P.Economic Restructuring Project funded by the World Bank.

The World Bank sanctioned about US$ 26 million including 10% contingency to finance 70% of the VRS amount (exgratia only) payable to the employees affected by implementation of Phase-I Action Plan of Public Enterprise Reform. The remaining 30% of the VRS amount and the terminal benefits will have to be provided by the State Government.

The Department for International Development (DIFD), U.K. sanctioned a grant of US$3.1 million as parallel finance for Technical Assistance to strengthen the institutional framework in Public Enterprises Department and also to design and implement the Social Safety Net Programme to minimize the social impact on the workers affected by the Reform under Phase-I Action Plan.

As a first step, Government   identified 19 small and medium size PSEs for restructuring, downsizing, privatization or closure.

Based on the Strategy Paper, a Phase-II Action Plan covering 68 enterprises spanning across 3 years of PE Reform program has been prepared which is under implementation.