M'rashtra passes bill to restructure corporations

"The minister of the department concerned along with the minister of concern department will take review of progress on restructuring of state owned loss making corporations," said finance minister Jayant Patil to state legislative assembly.

He was replying to discussion on bill which was introduced to scrap the board which was created to carry out restructuring of loss making public enterprises and once again vesting the powers to take decision about future of such units with the state government.

The bill was unanimously passed by the Maharashtra assembly on Thursday.

Admitting to fact that, there was considerable delay in implementing the board's recommendations who had recommended liquidation of 15 of state owned enterprises, privatisation of two others and reorganisation of one out of total 51 state owned corporations Patil assured the house, finance ministry will ensure smooth execution of board's advice.

And state government will try to send a signal that, by scrapping the board it doesn't send a signal that it is not hostile to disinvestment or reforms through its action, Patil said while replying to point raised by BJP MLA Devendra Phadanvis.

He also accepted that, general perception among the people is that, these state corporations are nothing but entities created to "park" some people but finance ministry with close cooperation of the concern ministry will work towards changing this image.

Orders will be issued to make managing directors or chief executive officers of these corporations are held personally responsible for functioning of the state owned enterprises.

All the corporations will be asked to streamline their accounting and auditing process and to ensure that, delay of more than two years will not be tolerated in submitting the audited accounts to state legislature, he added.