Concerted course correction efforts of the government for reviving the State’s industrial sector seem to have started earning dividends.
Without any major capital infusion, or substantial investments, 11 of the 42 public sector undertakings under the Industries Department that were earlier facing the threat of closure have started emerging from the red and the majority of them have posted profit between April and December last.
According to the latest report of the Public Sector Restructuring and Internal Audit Board, the PSUs have earned a turnover of ₹1,928.24 crore and 11 units show profit of ₹216.43 crore.
Seven companies had put up an impressive show and the most notable among them was the performance of Kerala Minerals and Metals Limited that recorded a net profit of ₹148. 77 crore and Travancore Titanium Products (TTP) Limited, ₹20.93 crore. All these companies were in the red in the corresponding period in 2016 and the future of TTP was at stake.
Kerala State Drugs and Pharmaceuticals Limited deserves a special mention. The company has brought down its loss and is gearing up for product diversification. A flood of orders from abroad and from other States have enthused the management to pursue its development plans. Many other companies are on the course of development too.
But everything is not hunky dory in the sector. For instance, the board has expressed its concern over the performance of the steel production company SAIL-SCL Kerala Limited. Even without production, the loss has almost doubled. The report rues the lack of initiative of SAIL to revive the unit and recommends the government to take the lead to revive the unit.
The textile units continue to be in loss. The report recommended the government to implement the revival package submitted by the Nandakumar committee to the government. Board chairman M.P. Sukumaran Nair attributed the progress in the sector to the interventions made from time to time.
“The board and the government have been able to instil professionalism in the management of the PSUs to a great extent. Those heading the units directly involve in the production process, take the lead to rectify lapses and employees have also started reciprocating to such initiatives. The result posted by units that were written off earlier is sufficient proof that minor course corrections could help to catalyse the growth and development of the public sector,” said Mr. Nair.
