After the closure of the Madhya Pradesh State Road Transport Corporation, the MP government is likely to make a last-ditch attempt to restructure its department of industries to resuscitate its loss-making arm Madhya Pradesh State Industrial Development Corporation, along the lines of public works department (PWD). | |
| The MPSIDC is deep in the red, with dues amounting to Rs 889 crore due to a multi-crore scam. |
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| The government has created a separate Road Development Corporation to restructure the loss-making PWD. Now the entity shares the larger chunk of civil work including construction of roads and bridges with PWD. |
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| "We are mulling over changing the structure of Madhya Pradesh State Industrial Development Corporation, which is under a heavy debt-burden. With this we will create a new Corporation which will function as an entity on a target-oriented system on fee basis," a highly-placed government source told Business Standard, adding, "Chief Minister Shivraj Singh Chauhan will discuss the matter with the senior department officials on June 9-10." |
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| The Madhya Pradesh State Industrial Development Corporation, according to an insider, is under Rs 889 crore debts, which includes only Rs 277 crore as principal and Rs 612 crore as interest. The corporation disbursed some loans under its Inter Corporate Deposit Scheme in a fishy manner by lending money from IDBI and a Cooperative Bank of Maharashtra. |
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| The state government filed a case in this regard with the State Economic Offense Wing. The cooperative Bank has obtained decree and attachment orders of the assets of the corporation, which does not bode well of the corporation and future of its 102 employees in Bhopal. |
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| "We are planning to recover the loan amount and making efforts to pull out of the corporation from the deep red by renegotiating with our borrowers and lenders," said Mr Praveen Garg, managing director of the corporation, who is also a chartered accountant by profession and also holds additional responsibilities in state finance department as secretary. |
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| The state finance department has already rejected to give bailout package for the corporation. |
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| "There is other alternates also but corporatisation of the activities of the department and its corporation is the best option. The surplus staff may be offered voluntary retirement scheme to lessen the salary burden, which is Rs 30 crore per annum . Later the employees will be asked to function in a target-oriented manner," said the source. |
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| The corporation has its own subsidiaries known as Audyogik Kendra Vikas Nigam in Indore, Rewa, Gwalior, Jabalpur and Bhopal with a contingent of approximately 1,300 employees who keep up hopping to the department without any significant activities. |
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