Public Sector Companies ::: State PSU more neglected ::: J&K PSU needs immediate attention of CM
Daya Sagar Sharma
September 08, 2009
J&K Chief Minister has expressed his very very serious concern for the betterment of J&K Public Sector Enterprises. But his good intentions will not yield unless a complete total exercise is done as regards the requirements of the public sector companies. So far though many exercises have been done, but unfortunately they lacked totalness and continuity. The near missing role of BPE in solution finding could be an indicator of the approach held so far. It is on 2nd September that some data on the bad health of J&K Government Public Sector Companies was quoted iwith the reference of government sources. It is true that the economic health of PSEs in J&K is very bad .But more bad is the status of the planning and conduct of the operations of these companies by the superior levels of managements. The Corporations do face problems at the floor level as well, but may be the reasons lie more in idleness / faulty recruitments than they lie in extra recruitments ( made more the project design requirements ) .The quality of data and figures that appeared in media in 2 Sept 09 and 3 Sept 09 too endorse this observation. The figures conveyed to media are unrealistic and reflect the casual manner in which these companies have been managed at the corporate levels all these years. To quote the figures mentioned for SIDCO ( Rs.824.65 Crore cash profit ) SFC (Rs.857.67 crore profit ), JKSRTC ( Rs. 389.21 crore Loss), JKSAIDCL ( Rs.400.63 Crore Loss ), JKFPMC ( Rs. 4.5 Crore Loss ) and the like are surely mis matching even to a naked eye. Earlier also Godbole committee report at para 4.8.5 had commented that except Himalayan Wool Combers Ltd most of the 21 SOEs ( 17 Companies and 4 Statutory Enterprises ) had their accounts in arrears from one to 14 years. The J&K Government , the Minister for Finance Mr. A.R. Rather must pull up and question the Managing Directors of the concerned Corporations to explain such wrong reporting ( in case it has not been an error at the level of press , ofcourse till 5 September no question has been raised by the government agencies on the genuineness of the reported figures) , I would say so casual handling of so serious matters.
The most experienced political leader is once again the Finance Minister. Even Godbole Committee does not appear to have examined the reasons for the sickness / under capacity utilization of Himalyan Wool Combers and at para 4.8.48 has described HWCL just in three lines.
The Bureau of Public Sector Enterprises ( BPE ) is under the Finance Ministry. Let Mr. Rather come to the rescue of this ailing sector ( PSEs), take the reins direct in hands and with the involvement of BPE get the exercise conducted once for all ( BPE has never been involved as per its status in the past ). With the involvement of BPE in the process all the missing links of reports like Rajan report ( 1980 ), Godbole Report ( 1998 ), Core Group Report ( 2004 Mr. Khursheed Ganai as Chairman) and High Power Committee Report ( 2007 ) could be repaired / connected. Till a comprehensive exercise is completed, any decision taken for even liquidating some companies, the employees of PSEs should be paid in time. This would save many families from distress and uncertain future.
Most of the Corporations in J&K in general have been established under Companies Act as private limited companies fully owned by the Government. Chief Executives/ Managing Directors are appointed by Government and the Articles of Association/ Memorandum of State Public Sector Corporation very explicitly lay down that the Managing Director/ Chief executive will be appointed by the State Government ( from with in or outside the Corporation).
All these years questions have been raised on the performance of PSEs, non seriousness of the employees of the corporations, quality / quantity levels of recruitments in the Corporations , And the employees have agitating demanding timely payment of salaries / amendments in service conditions like grades / change of COLA to DA / timely deposit of CPF / changing from CPF to Pension provision / payment of superannuation benefits in time. One after another committee was appointed for studying the PSEs deficiencies / problems / needs and working out / suggesting the remedies / actions to be taken. Unfortunately although the process has run over nearly 3 decades but to no betterment yet.
First J&K State owned enterprise registered as a company was J&K Minerals Limited in 1960 and Cement factory at Wayun , cement concrete factories at Bari Brahmana and other State minerals/ products are under the scope of this PSU. J&K Industries Ltd was incorporated in 1963 to handle important items like silk, resin, joinery, wool etc.
The process of constitution of committees on the affairs of J&K PSE started with the Rajan Committee Report ( 1980). Another committee headed by Mr. Madhav Godbole (1998 ) while commenting on the poor performance of Government Departments also touched JK Public Sector Companies. Godbole Report had presented disappointing position regarding government departments as well. Godbole Committee report said that (i) Para 4.6.10 ::SICOP should be merged with SIDCO, (ii) Para 4.8.54 :: J&K HPMC should be merged in J&K State Agro Industries Devt Corporation Ltd, J&K Handicrafts ( S&F) Corporation and J&K Handloom Handicrafts Raw Material Supplies Organisation should be merged with J&K Handloom Development Corporation, ( iii). Para 4.8.53 :: privatisation or closure of J&K Minerals Ltd, J&K Himalayam Wool Combers Ltd, J&K Projects Construction Corporation Ltd , J&K Tawi Scooters Ltd, J&K Cements Ltd and J&K Cable Car Corporation (iv) Para 4.8.55 :: engagement for professional consultants for SOE/ PSU/ the units where re-engineering was suggested, (v) Para 4.8.56 ::t Chief Executive Officers ( MDs) of SOEs should be invariably drawn from persons of professional competence and adequate experience in the field of management whether from civil services or outside and BODs should have some professionals from out side the government with the Chairman of the BOD as far as possible a professional of proven record and (vi) Para 4.8.57 ::: Articles of Association of SOEs ( State owned Enterprises) should be reviewed to ensure that there is no provision which gives authority to the government to give directives in regard to day to day business activities of any Corporation. But even after 10 years no measurable action in this regard has been taken judiciously . Rather it could be alleged that some corporations have retained only to promote some favorite as GM/ MD. One thing is sure that Godbole report has been instead used for t accusing exclusively the employees of PSU for their sickness and winding up the PSUs, where as the reality is some thing else.
Every next day news of some new programme to be taken by some corporation is in media like announcement made in August 2009 MD JKSRTC for buying 150 new buses. No any thoughtful application of minds appears emerging with employees still begging for wages. Earlier by BOD of JK SRTC it was decided to offer VRS to 50 % of the 5000 staff and simultaneously it was also decided for some big investments and modernization. Unless idleness and the surplus recruitments are well identified and future commercial project evaluations are done it may prove a failed exercise to decide to shed 2500 employees with a policy on oath to not make further recruitments.
Vide Government Order No; 67-IND of 2001 dated 22-02-2001 ( Cabinet Decision No. 59/5 dated 10-03-2001) it was ordered to create a PSU Restructuring Fund. Finance Department. was asked to formulate a proposal for consideration of the State Cabinet regarding the composition and functioning of Restructuring Fund. The where abouts of PSU Restructuring Fund are not known. Godbole committee report at para 4.8.5 had commented that except Himalayan Wool Combers Ltd most of the 21 SOEs ( 17 Companies and 4 Statutory Enterprises had their accounts in arrears from one to 14 years. The then Chief Minister J&K Dr. Farooq Abdullah had on 22nd March 2001 during the debate on annual grants of Industries and Commerce Ministry described the employees of J&K Public Sector Companies as his own children and said that a committee comprising of the Finance Minister A.R Rather and Industries Minister would soon settle the matters pertaining to striking public sector employees but issues did not end in amicable settlement. Instead on 11 April 2001 Public Sector Employees families demonstrated on the streets of Jammu . It was for the first time in the public sector and trade union history of J&K / may be independent India that even 5 old children along with their mothers and sisters courted arrest.
Problems of PSUs continuing , a Core Group (Sh. Khurshid Ahmed Ganai Resident Commissioner Delhi as Chairman ) was formulated to study the functioning of PSE in detail and make recommendations under Financial Commissioner (Finance ) order no. 23-F of 2003 dated 10-02-03 ( Cabinet decision . Cabinet decision no. 167/22 dated 18-12-2002 ). The report and recommendations were to be made for the causes of the sickness/ reorganization/ restructuring and revival of public sector Corporations but only 30 days to complete report. The CORE group had not even started interaction with the Chief Executives of the PSEs till 31-03-03 where as report was to presented in 30 days. Again on 20 June 2005 Mr. M.H Baig Minister for Finance & Planning said that Government had decided to set up an Assets Reconstruction Company ( ARC) for revival of the sick financial units / Public Sector with Director Finance as Nodal Officer for formulating a proposal for the constitution of Assets Reconstruction Company. Godbole Committee and Khursheed Committee had also made recommendations in this regard. .Over four years have passed and no regular activity of the proposed Assets Reconstruction Company has been observed till 2009. J&K Government had on 7-06-2007 constituted a high power committee on PSes headed by Financial Commissioner (Home ) (Mr. BR Kundal as Chairman) with Principal Secretary / Commissioner / Secretary/ of Agriculture, Planning and Development, Power Development, Finance and Industries & Commerce Departments as members..But Bureau of Public Sector Enterprises ( headed by a senior / competent officer Mr. Iqbal Khandey) appeared again no where involved actively in the process . On the recommendations of the Committee Voluntary Retirement Scheme ( VRS ) / Golden Hand Shake ( GHS) was approved by the J&K Cabinet in July 2007 and the managements / BOD were asked to initiate the process of implementation. Other issues still remained under study.
On 8 September 2007 the JK State Road Transport Corporation employees again protested out side their Vikram Chowk Office with no clothes above their waists. This TOPLESS demonstration surely appeared more to be a display of helplessness than a protest. The children and employees of J&K State Road Transport Corporation (SRTC) burnt the school bags and books at Srinagar on 2nd February 2008 , on 22nd February the SRTC employees were again on roads in Jammu along with their families. The problem was still there.
The government constituted (21 Dec2008 ) a committee to examine issues relating to the demand for conversion of Cost of Living Allowance (COLA) into Dearness Allowance for a possible new pay structure and related matters concerning with Public Sector Units (PSUs) of the state. The Chairman of the Committee was to be available for interacting/meeting with the representatives of the employee's associations/unions of PSUs and those who were desirous to meet the Chairman of the Committee, had been informed that the Chairman shall be available on 22nd December from 2 PM to 5 PM in his office chambers in the Civil Secretariat, J&K, Jammu (stakeholders may also communicate their suggestions/inputs within the parameters of the mandate of the Committee at Room No. 1/9 , Civil Secretariat, J&K, Jammu -Director Codes, Finance Department. The suggestions could also be made online on the website namely j&kfinance.nic.in. Some suggestions were made on line by some but no response..
SRTC employees are again on strike since 26 August 2009 . . They protested on 1 Sept on roads at Srinagar and observed the 33rd foundation day of the state-owned body as a "black day" in protest against non-payment of salaries. On Aug 29 large number of family members of SRTC employees took to streets along with their guardians demanding release of salaries of their family members at Jammu.
( Daya Sagar is a Sr Coloumnist on Kashmir affairs and a social activist dayasagr@yahoo.co.uk )
The most experienced political leader is once again the Finance Minister. Even Godbole Committee does not appear to have examined the reasons for the sickness / under capacity utilization of Himalyan Wool Combers and at para 4.8.48 has described HWCL just in three lines.
The Bureau of Public Sector Enterprises ( BPE ) is under the Finance Ministry. Let Mr. Rather come to the rescue of this ailing sector ( PSEs), take the reins direct in hands and with the involvement of BPE get the exercise conducted once for all ( BPE has never been involved as per its status in the past ). With the involvement of BPE in the process all the missing links of reports like Rajan report ( 1980 ), Godbole Report ( 1998 ), Core Group Report ( 2004 Mr. Khursheed Ganai as Chairman) and High Power Committee Report ( 2007 ) could be repaired / connected. Till a comprehensive exercise is completed, any decision taken for even liquidating some companies, the employees of PSEs should be paid in time. This would save many families from distress and uncertain future.
Most of the Corporations in J&K in general have been established under Companies Act as private limited companies fully owned by the Government. Chief Executives/ Managing Directors are appointed by Government and the Articles of Association/ Memorandum of State Public Sector Corporation very explicitly lay down that the Managing Director/ Chief executive will be appointed by the State Government ( from with in or outside the Corporation).
All these years questions have been raised on the performance of PSEs, non seriousness of the employees of the corporations, quality / quantity levels of recruitments in the Corporations , And the employees have agitating demanding timely payment of salaries / amendments in service conditions like grades / change of COLA to DA / timely deposit of CPF / changing from CPF to Pension provision / payment of superannuation benefits in time. One after another committee was appointed for studying the PSEs deficiencies / problems / needs and working out / suggesting the remedies / actions to be taken. Unfortunately although the process has run over nearly 3 decades but to no betterment yet.
First J&K State owned enterprise registered as a company was J&K Minerals Limited in 1960 and Cement factory at Wayun , cement concrete factories at Bari Brahmana and other State minerals/ products are under the scope of this PSU. J&K Industries Ltd was incorporated in 1963 to handle important items like silk, resin, joinery, wool etc.
The process of constitution of committees on the affairs of J&K PSE started with the Rajan Committee Report ( 1980). Another committee headed by Mr. Madhav Godbole (1998 ) while commenting on the poor performance of Government Departments also touched JK Public Sector Companies. Godbole Report had presented disappointing position regarding government departments as well. Godbole Committee report said that (i) Para 4.6.10 ::SICOP should be merged with SIDCO, (ii) Para 4.8.54 :: J&K HPMC should be merged in J&K State Agro Industries Devt Corporation Ltd, J&K Handicrafts ( S&F) Corporation and J&K Handloom Handicrafts Raw Material Supplies Organisation should be merged with J&K Handloom Development Corporation, ( iii). Para 4.8.53 :: privatisation or closure of J&K Minerals Ltd, J&K Himalayam Wool Combers Ltd, J&K Projects Construction Corporation Ltd , J&K Tawi Scooters Ltd, J&K Cements Ltd and J&K Cable Car Corporation (iv) Para 4.8.55 :: engagement for professional consultants for SOE/ PSU/ the units where re-engineering was suggested, (v) Para 4.8.56 ::t Chief Executive Officers ( MDs) of SOEs should be invariably drawn from persons of professional competence and adequate experience in the field of management whether from civil services or outside and BODs should have some professionals from out side the government with the Chairman of the BOD as far as possible a professional of proven record and (vi) Para 4.8.57 ::: Articles of Association of SOEs ( State owned Enterprises) should be reviewed to ensure that there is no provision which gives authority to the government to give directives in regard to day to day business activities of any Corporation. But even after 10 years no measurable action in this regard has been taken judiciously . Rather it could be alleged that some corporations have retained only to promote some favorite as GM/ MD. One thing is sure that Godbole report has been instead used for t accusing exclusively the employees of PSU for their sickness and winding up the PSUs, where as the reality is some thing else.
Every next day news of some new programme to be taken by some corporation is in media like announcement made in August 2009 MD JKSRTC for buying 150 new buses. No any thoughtful application of minds appears emerging with employees still begging for wages. Earlier by BOD of JK SRTC it was decided to offer VRS to 50 % of the 5000 staff and simultaneously it was also decided for some big investments and modernization. Unless idleness and the surplus recruitments are well identified and future commercial project evaluations are done it may prove a failed exercise to decide to shed 2500 employees with a policy on oath to not make further recruitments.
Vide Government Order No; 67-IND of 2001 dated 22-02-2001 ( Cabinet Decision No. 59/5 dated 10-03-2001) it was ordered to create a PSU Restructuring Fund. Finance Department. was asked to formulate a proposal for consideration of the State Cabinet regarding the composition and functioning of Restructuring Fund. The where abouts of PSU Restructuring Fund are not known. Godbole committee report at para 4.8.5 had commented that except Himalayan Wool Combers Ltd most of the 21 SOEs ( 17 Companies and 4 Statutory Enterprises had their accounts in arrears from one to 14 years. The then Chief Minister J&K Dr. Farooq Abdullah had on 22nd March 2001 during the debate on annual grants of Industries and Commerce Ministry described the employees of J&K Public Sector Companies as his own children and said that a committee comprising of the Finance Minister A.R Rather and Industries Minister would soon settle the matters pertaining to striking public sector employees but issues did not end in amicable settlement. Instead on 11 April 2001 Public Sector Employees families demonstrated on the streets of Jammu . It was for the first time in the public sector and trade union history of J&K / may be independent India that even 5 old children along with their mothers and sisters courted arrest.
Problems of PSUs continuing , a Core Group (Sh. Khurshid Ahmed Ganai Resident Commissioner Delhi as Chairman ) was formulated to study the functioning of PSE in detail and make recommendations under Financial Commissioner (Finance ) order no. 23-F of 2003 dated 10-02-03 ( Cabinet decision . Cabinet decision no. 167/22 dated 18-12-2002 ). The report and recommendations were to be made for the causes of the sickness/ reorganization/ restructuring and revival of public sector Corporations but only 30 days to complete report. The CORE group had not even started interaction with the Chief Executives of the PSEs till 31-03-03 where as report was to presented in 30 days. Again on 20 June 2005 Mr. M.H Baig Minister for Finance & Planning said that Government had decided to set up an Assets Reconstruction Company ( ARC) for revival of the sick financial units / Public Sector with Director Finance as Nodal Officer for formulating a proposal for the constitution of Assets Reconstruction Company. Godbole Committee and Khursheed Committee had also made recommendations in this regard. .Over four years have passed and no regular activity of the proposed Assets Reconstruction Company has been observed till 2009. J&K Government had on 7-06-2007 constituted a high power committee on PSes headed by Financial Commissioner (Home ) (Mr. BR Kundal as Chairman) with Principal Secretary / Commissioner / Secretary/ of Agriculture, Planning and Development, Power Development, Finance and Industries & Commerce Departments as members..But Bureau of Public Sector Enterprises ( headed by a senior / competent officer Mr. Iqbal Khandey) appeared again no where involved actively in the process . On the recommendations of the Committee Voluntary Retirement Scheme ( VRS ) / Golden Hand Shake ( GHS) was approved by the J&K Cabinet in July 2007 and the managements / BOD were asked to initiate the process of implementation. Other issues still remained under study.
On 8 September 2007 the JK State Road Transport Corporation employees again protested out side their Vikram Chowk Office with no clothes above their waists. This TOPLESS demonstration surely appeared more to be a display of helplessness than a protest. The children and employees of J&K State Road Transport Corporation (SRTC) burnt the school bags and books at Srinagar on 2nd February 2008 , on 22nd February the SRTC employees were again on roads in Jammu along with their families. The problem was still there.
The government constituted (21 Dec2008 ) a committee to examine issues relating to the demand for conversion of Cost of Living Allowance (COLA) into Dearness Allowance for a possible new pay structure and related matters concerning with Public Sector Units (PSUs) of the state. The Chairman of the Committee was to be available for interacting/meeting with the representatives of the employee's associations/unions of PSUs and those who were desirous to meet the Chairman of the Committee, had been informed that the Chairman shall be available on 22nd December from 2 PM to 5 PM in his office chambers in the Civil Secretariat, J&K, Jammu (stakeholders may also communicate their suggestions/inputs within the parameters of the mandate of the Committee at Room No. 1/9 , Civil Secretariat, J&K, Jammu -Director Codes, Finance Department. The suggestions could also be made online on the website namely j&kfinance.nic.in. Some suggestions were made on line by some but no response..
SRTC employees are again on strike since 26 August 2009 . . They protested on 1 Sept on roads at Srinagar and observed the 33rd foundation day of the state-owned body as a "black day" in protest against non-payment of salaries. On Aug 29 large number of family members of SRTC employees took to streets along with their guardians demanding release of salaries of their family members at Jammu.
( Daya Sagar is a Sr Coloumnist on Kashmir affairs and a social activist dayasagr@yahoo.co.uk )
Print
Email
