The Hindu : Front Page : State may backtrack on PSU reforms

Online edition of India's National Newspaper
Wednesday, Aug 02, 2006

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Front Page

State may backtrack on PSU reforms

Special Correspondent

Government decides to amend the controversial GO 5 on public sector units

HYDERABAD: Yielding to pressure from the Opposition and from within the ruling Congress, the State Government has decided to amend the controversial GO 5 for ringing 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 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 such as 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.

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 crores for VRS this year, there was no way the Government could retrench 64,000 employees by spending Rs. 1300 crores 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.

In an `open letter' to the employees on Tuesday, he assured them that 3.5 lakh jobs would be created in three years and that none would be removed from service as feared.

Sentimental note

Striking a sentimental note, he said Government employees had known him since 1978.

"There is no need to enlighten you as I won't face any opposition from employees and do not believe in doing injustice to them," the letter stated.

He declared that the Government had decided to introduce a few hundred buses for expanding the RTC services.

"How it would be possible to take this up if there are plans to do away with thousands of RTC employees via VRS."

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