The Hindu : Front Page : GO 5 on sweeping reforms cancelled

Online edition of India's National Newspaper
Tuesday, Aug 15, 2006

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GO 5 on sweeping reforms cancelled

Special Correspondent

PSU reforms to continue, says Chief Minister Y.S. Rajasekhara Reddy

HDERABAD: The 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 which feared that reforms in 30 PSUs, including the Singareni Collieries and 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.

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 APRTC and Singareni Collieries, about possible privatisation of these bodies even after the GO was scrapped.

The Chief Minister said in a press release that his Government had no intention of removing even a single employee in any PSUs and this was not discussed at any Cabinet meeting. But, political parties took advantage of the situation by alleging that many employees were in for being sacked. Dr. Reddy said his Government was in favour of creating more jobs and explained how numerous opportunities were created in irrigation, power, IT and industrial sectors.

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