The Hindu : Andhra Pradesh News : PSU staff donate for free power; seek end to reforms

Online edition of India's National Newspaper
Sunday, May 30, 2004

Andhra Pradesh

Andhra Pradesh

PSU staff donate for free power; seek end to reforms

By Our Staff Reporter

HDYERABAD, MAY 29. The Andhra Pradesh Public Sector Employees' Federation on Saturday announced donation of Rs.50 lakhs -- one day's salary of its members -- for the State Government's free supply of power to the agricultural sector.

This assurance was given by a delegation of the association headed by M. Janardhan Reddy, which met the Chief Minister, Y. S. Rajasekhara Reddy, at Lakeview Guest House. A cheque for Rs.1.5 lakhs was handed over to him by employees of the Andhra Pradesh Seeds.

In a representation submitted to Dr. Reddy, the federation sought a commission of enquiry to look into all cases of sale of assets/privatisation/disinvestment of shares relating to public sector undertakings.

The representation stated that so far reforms had been completed in 55 enterprises and about 45,000 employees were relieved. "The first phase of reforms and the ongoing phase have not yielded any positive results. On the contrary, they have been counter-productive."

It said a "look at the amount spent on voluntary retirement scheme in some of the units reveals how staggering amounts have been indiscriminately spent on VRS. These amounts could well have been spent on revival of the units, saving over 45,000 jobs and generating more jobs in the ancilliary industries. Also, properties of these public sector units estimated at Rs.1,000 crores, would have remained in the public domain rather than being sold away at less than 25 per cent value fetching a mere Rs.250 crores."

"This clearly shows," the representation said, "that the Government and the public have lost Rs.750 crores on account of sale of assets and Rs. 500 crores on account of VRS benefits. This is poor economics and shameful public formulation at the behest of the World Bank."

The federation demanded stopping of the process of reforms and even its reversal. "This is the least the new Government must do as it is mandated to do so as election results have indicated."

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