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A.P. Government cancels GO 5 on PSU reforms

Special Correspondent

Reforms to continue, says Chief Minister Y.S. Rajasekhara Reddy


  • YSR consults Rosaiah, officials before cancelling the GO
  • Action to remove apprehensions of employees: Rosaiah
  • Government for creating more jobs, says Chief Minister

    HYDERABAD: The Andhra Pradesh Government on Monday gave a formal burial to GO No. 5 that proposed sweeping reforms in public sector undertakings (PSU) by announcing its cancellation in order to remove apprehensions among the employees.

    At the same time, Chief Minister Y. S. Rajasekhara Reddy reiterated his Government's resolve to press ahead with the reforms process in the PSUs without any relation to the controversial Government Order.

    The decision to scrap the GO, which raised the hackles of employees' unions and opposition parties, was taken by Chief Minister Y. S. Rajasekhara Reddy after discussing its various implications at a meeting with Finance Minister K. Rosaiah, Chief Secretary J. Harinarayan and other senior officials.

    Barely two weeks ago, the Government had decided to keep the order in abeyance `until further orders' as the political storm against it began gathering momentum. But, this damage control exercise did not satisfy the Left that feared that reforms in 30 PSUs, including the Singareni Collieries and the Andhra Pradesh State Road Transport Corporation (APSRTC), would be introduced through the backdoor. The CPI(M) even produced documents to show that such measures were under way.

    But apparently, the Government decided to do away with the GO altogether and avoid a bitter debate in the monsoon session of the Assembly beginning later this week.

    Prime concern

    Announcing the decision, Mr. Rosaiah told reporters that "the GO has been cancelled once and for all and will not be revived in any form." He said that apprehensions continued among the employees, especially those working in the APSRTC and Singareni Collieries, about possible privatisation of these bodies even after the GO was scrapped.

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