Odisha: Eight state-owned companies making losses

BHUBANESWAR: There are eight state government-owned companies that are making losses.
Odisha has 36 state-owned companies. The government is taking necessary steps to stop losses and make profit for these companies, says official sources.
Ashok Chandra Panda, public enterprises minister, said this in the state assembly on Friday. “The state government has not taken any steps to privatise these companies,” he added.
These loss-making companies were Odisha Tourism Development Corporation (OTDC), Gridco, Odisha State Road Transport Corporation (OSRTC), Industrial Development Corporation of Odisha Limited (IDCOL), Odisha Rural Housing and Development Corporation (ORHDC), Idcol Kalinga Iron Works Limited (IKIWL), Idcol Ferro Chrome and Alloys (IFCA) and Odisha State Financial Corporation (OSFC).
The minister in his reply said OTDC is making losses due to Covid-19 pandemic. They are strengthening services through training and professionalism, improving guest complaint and redressal mechanisms along with sanitation and cleanliness. Government has improved infrastructure of the Panthanivas/yatrinivas/Panthika, digitalization of booking and operation, promotion of packages and circuits.
According to the official sources, Idcol is making a loss due to deposit of compensation under the mines and minerals (development and regulation) Act. Similarly, ORHDC faced losses as there was no recovery from the economic weaker section (EWS) and other schemes. IKIWL and IFCA cannot earn profits due to use of old technology and heavy production expenses.
The state said that OSRTC is a service provider organisation and it made losses during Covid-19 time. Many industrial houses could not repay loan to OSFC and cases related to repayment of loan are sub-judice. Due to this, OSFC is making losses, said the official sources.
The state government has taken some steps to solve the problems and make the companies profitable. Some of these steps include allowing staff to take voluntary retirement from service to reduce the number of employees and cut the expenses. Companies will follow corporate governance manuals for better management and appoint independent directors. The government will recruit people for top director-level posts through the public enterprises selection board, put emphasis on collection of loan amounts taken from OSFC and infusing capital and manpower in public sector undertakings for growth.