Centre’s nod for PSU merger in HP

Confirming this,Additional Chief Secretary (Industry) Harinder Hira said the state government has received approval of the Central government for the merger. “We have submitted proposals about merger of the Nahan Foundry (Sirmaur) ,which is awaited,” she said.

In fact,she recalls,“The government for quite sometime has been drawing up plans to improve working of its PSUs and recently some studies were also carried out. The merger of two or more corporations brings in greater efficiency and cohesiveness in the actions”.

Of Himachal Pradesh’s 20 working PSUs,only eight earned a profit of Rs 47.68 crore. The rest have incurrened losses,with the highest ever being Rs 34.18 crore by Himachal Pradesh Road Transport Corpooration. Losses resulted from major deficiencies in the working of the PSUs,infructuous investments and bad management. A big army of staff,nearly 43,000 strong after retirements and deputations to other government organs,remained another reason for PSUs being in the red.

The SSIEC’s current effective staff strength is 19 and has a turnover of Rs 1 crore in its activities relating to the procurement of iron and steel from prime producers like Steel Authority of India Limited,Rashtriya Ispat Nigam Limited and its further sale to the Small scale industrial units. Another item traded by the PSU is bitumen

The corporation also owns eight industrial sheds in Parwanoo and 17 industrial sheds in Paonta Sahib,which are also leased out to the industrial units.The officials say the corporation has started making slight profits of up to Rs 2 lakh but its cumulative losses are really a matter of concern.

Officials recall that during initial years,the PSU really did a pioneering job in promoting Industrialisation and trade of then controlled items. It also imported raw materials such as iron and steel,palm fatty acid,paraffin wax,cement,steam coal to the small scale and expanded its network through the state. However as some more PSUs were opened to deal with industrial,handloom and other jobs,the corporation’s role started shrinking.