J-K govt to set up two holding companies for ailing PSEs

In a bid to encourage private-public partnership to revamp ailing PSEs in Jammu and Kashmir, Finance Minister Haseeb Drabu today said that state government will pull out all the corporations from every departments and put them under one head after forming two holding companies to revive them.
"One of the major proposal, which will be successful in big way to become a major sources of money for the government and investment in next five year, is the idea that we will pull out all the corporation from all the departments and put them under one head", Drabu told reporters here.

Jammu and Kashmir has 21 PSUs and Corporations and most of them were ailing.
"We will setup two holding companies-- one for financial corporations and another for non-financial corporations. Through these, we will get private investment and loans .. To revive them," he said.
This would be done under new policy of transforming government, governance and economy.
"I have already made a beginning by converting all the debt that J&K has in its balance-sheets..It will take one year to clean the balance sheets of these companies and then recapitalize them as per the need and hopeful in next five year take them public," he said.

"But also major productivity to start with. Then take for example administrative department like State Motor Garges-- if you look at its assets and staffs, it may perhaps the largest transport company in the state. Why cannot it become fully functional profitable unit. I am looking for its reformation," Drabu said.

"Broad thrust is rival of the J&k economy of Jammu. Once economy revives then government will get its own taxes and revenues will start to flow. No government can hope from an economy that is not doing," he said.
Lakahnpur Toll Plaza will be outsourced to private sector, he said adding that it will generate huge money as well as put an end to corruption.

Terming Lakhanpur as den of corruption, Drabu said that Lakhanpur has been earning over Rs 450 Crores annual from toll and excise duty.
"We have large number of corporations under the government and in the many cases government department don't have details about them," he added.