Team Blitz India
Eighteen public sector units (PSUs) in Kerala are on the brink of closure, according to the Centre for Management Development (CMD), a government-run entity. This development underscores a failure of the government to make these entities profitable. The Left Democratic Front (LDF) administration had initially aimed to bolster PSU profitability rather than resorting to closures.
However, the state Budget for the financial year 2024-25 has hinted at a shift in the strategy by encouraging private capital investments across various sectors. This has sparked concerns about the government’s commitment to the public sector.
Among the top five loss-making PSUs are KSRTC, Kerala Water Authority, Pension Fund Ltd, Kerala State Electricity Board (KSEB), and SupplyCo. Notably, the State Beverages Corporation, which typically ranked among the top profit-makers, has slipped to eighth place, albeit its decline was primarily attributed to challenges during the peak of the COVID-19 pandemic.
However, entities like Kerala State Financial Enterprises (KSFE), Minerals and Metals, Travancore-Cochin Chemicals, Kerala State Industrial Development Corporation (KSIDC), Backward Classes Development Corporation, and Pharmaceuticals Corporation have emerged as profit leaders.
The PSUs collectively employ approximately 1.29 lakh individuals, with total investments amounting to Rs 90,948 crore, marking an 11.54% increase. Sales revenue has surged to Rs 40,774 crore, representing a 9% uptick from the previous fiscal year. Furthermore, profits from 67 PSUs have soared by 23% to reach Rs 2,028 crore.
In terms of contributions, PSUs have channelled Rs 16,863 crore to the State government and Rs 970 crore to the Union Government in the 2022-23 period. Post the closure of the 18 struggling units, Kerala’s PSU count will dwindle from 149 to 131.
While the number of profitable PSUs has slightly decreased from 58 to 57, there has been a decline in loss-making entities from 66 to 59. Nonetheless, some PSUs have yet to submit their financial accounts either fully or partially.
The list of PSUs facing closure includes Kerala Premo Pipe Factory, Electronics and Electricals (Kanjicode), Keltron Counters, Keltron Power Devices, Keltron Rectifiers, Kerala Garments, Kerala State Wood Industries, Kunnathara Textiles, Kerala Asbestos Cement Factory, Kerala Housing Development Finance Corporation, Kerala High-Speed Rail Corporation, Pratheeksha Bus Shelters Kerala, SIDCO Mohan, Sidkel Televisions, Vanchinad Leathers, Ashwas Public Amenities Kerala, School Teachers and Non-Teaching Corporation, and Kerala Special Refractories
