Public Enterprises Department

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Objectives the Government seeks to achieve by carrying out Reforms

P E Reforms - only option available to Government

In view of the Financial position of the SLPEs in state, it is felt that without further investment, these SLPEs cannot survive. The financial strength of the Government does not permit it to continue supporting loss-making SLPEs. Even if Government continues support, these enterprises cannot stand competition from the market forces and if nothing is done, each one of these enterprises will be moving towards eventual closure as has happened with Allwyn Watches, AP Scooters, Republic Forge and a number of Co-operative Sugar and Spinning Mills, with consequent job losses social turmoil and avoidable loss to the economy.

In the above mentioned scenario, the only option available to the Government is to implement PE Reforms. Government seeks to achieve the following objectives by the Public Sector Reform and privatisation:

  • To foster sustainable economic and social development and a competitive market economy that encourages investment, employment and trade;

  • To increase ownership, management and control of economic activities by the private sector;

  • To withdraw Government from commercial activities as far as practicable and reduce and eventually eliminate Government's financial support to the enterprises;

  • To promote effective corporate governance, autonomy and accountability in those limited number of enterprises in which Government would retain an interest. These enterprises would move towards effective utilisation of resources;

  • To bring in modern technology, management practices, accountability and private investment for value addition;

To better utilise resources released by privatisation, for poverty alleviation, education, health and development of infrastructure and technology.