Andhra Pradesh   

Andhra Pradesh may backtrack on PSU reforms

Special Correspondent

HYDERABAD: Yielding to pressure from the Opposition and from within the ruling Congress, the Andhra Pradesh Government has decided to amend the controversial GO 5 for bringing in far-reaching reforms in public sector undertakings.

Taking note of the heavy flak drawn by the GO that has listed out 30 enterprises, including the APSRTC and the Singareni Collieries, for possible downsizing, Chief Minister Y. S. Rajasekhara Reddy initiated damage control measures after discussions with Finance Minister K. Rosaiah and Chief Secretary J. Harinarayan.

He asked the official to examine how the apprehensions among the workers about possible retrenchment could be allayed.

The Chief Secretary later asked the Principal Secretary, Public Enterprises, Janaki Kondapi, to seek the Law Department's opinion on the GO. Options such as deleting the contentions provisions of the GO like the move to offer VRS (Voluntary Retirement Scheme) to employees could be suggested. After the Law Department gives its opinion, the GO is likely to be placed before the Cabinet.

Assurance to employees

For the second successive day, Government representatives took pains to assure workers and employees that their interests would not be harmed. Their argument was that with a budgetary provision of Rs. 15 crore for VRS this year, there was no way the Government could retrench 64,000 employees by spending Rs. 1300 crore as alleged by CPI(M) leader B. V. Raghavulu.

Dr. Reddy himself sought to assuage the feeling of employees stating that efforts were on to fill 45,000 vacant posts in irrigation, power, police, education and medical departments.

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