Kerala opposes the privatization of PSU
privatization of PSU, Kerala’s chief minister, Pinarayi Vijayan, warned the center not to privatize the country’s public sector on Wednesday, September 8. Also mentioned that the state government’s policy is to retain the PSU and make it profitable.
Kasaragod’s BHEL Electrical Machines Ltd is a Central Public Sector Company (CPSE) and a subsidiary of Maharana’s BHEL. As per Vijayan, given the threat of privatization, the state government decided to take over PSU. The government recognizes the importance of public sector companies. A total of Rs 77 crore was spent to take over the PSU, including Rs 43 crore in rejuvenation costs. He added that the company would regain a new life through advanced facilities. He said the state government has also decided to provide wage arrears to employees of companies with no income in the past two years, which will cost 14 crores.
Takes over BHEL-EML
There are two leading practices in our country in public sector companies. One is to privatize them, and the other is to strengthen these institutions. He further added that after recognizing the policy of globalization, privatization has become more critical.
Moreover The Chief Minister insisted that the state government opposed PSU’s privatization and stated that its policy is to enlarge and spread the activities of institutions to make them gainful.The Kerala administration recently permitted BHEL to withdraw from its joint venture (JV) with State-run Electrical Machines Ltd. Although BHEL owns 51% of the shares in PSU, the state government owns 49% of the shares in the joint venture. This raises a questions on the future of such PSUs in Kerala.
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