Sl.

No.

Name of the PSUs.

Recommendations

01

Orissa State Electronics Development Corporation.

Should continue.

Its subsidiaries including IPITRON TIMES, ELCOSMOS & ELCO COMMUNICATIONS should be privatized / liquidated.  The offer of M/s.  ZAVERI Holding Corporation should be actively pursued and finalized.

02

Konark Television Limited.

Should be converted into a Joint Venture Company by inducting a reputed private entrepreneur and confirming Government participation to not more than 49 percent of its share holdings. Till such time, the Company should be given appropriate Government support.

03

Industrial Development Corporation.

This Corporation should continue with the following restructuring measures:

i) Re-rolling Mills & Hira Cables may be privatized,

   OR,

Privatize Re-rolling Mills and integrate Hira Cables with Hirakud    Industrial Works, a profit making subsidiary of IDCOL, to provide turn key service to GRIDCO, PGCIL etc., for erection of substations and transmission lines.

ii) IDCOL Piping & Engineering Works should be privatized and converted into a Joint Venture Company.

iii) ABS Spinning Mills should be converted into a Joint Venture Company.

iv) ORICHEM, under BIFR package needs to be converted into a Joint Venture Company.

v) All the shares of IDCOL in S. N. Corporation should be divested in favour of a suitable private entrepreneur.

vi) IDCOL should induct a reputed private entrepreneur to convert IDCOL Cements Ltd., into a Joint Venture continuing IDCOL's share holdings to not more than 49 percent.

vii) BIFR package for Konark Jute Mill should be implemented quickly.  Efforts should also be made to convert it into a Joint Venture or to privatize it unless discipline improves substantially and it is possible to run the unit profitably on a sustained basis.

viii) The Ferro-chrome / KIW plant should be modernized and diversified, if necessary, by way of partial privatization.

04

Orissa Small Industries Corporation

It should continue and all the subsidiary companies of OSIC should either be privatized or converted into Joint Venture enterprises with private participation (OSIC holding a minority of share holdings).

05

IPICOL

Should continue.

APICOL which has been formed recently should gradually take over IPICOL's role pertaining to promotion of Agro and Food Processing industries.

06

Orissa State Financial Corporation

Should continue.

The Corporation should introduce a VRS scheme after due approval of its Board of Directors and vetting by Department of Public Enterprises to get rid of 300 surplus employees.  OSFC could extend support to the SC & ST Finance Corporation for sanction / Disbursement 1 Recovery of loans to SC & ST beneficiaries. Appropriate operational arrangements between the two Corporations should be finalized quickly.

07

Orissa Film Development Corporation

Should continue.

M/s.  Kalinga Studio may be converted into a Joint Venture with private participation for better performance.

08

Orissa State Export Development Corporation

Should be wound up.

09

Orissa State Leather Corporation

The commercial activities of the Corporation should be privatized and the promotional activities should be looked after by formation of Leather Cooperatives.

10

Orissa Power Generation Corporation

Should continue.

Power Purchase Agreement (PPA) to he signed immediately with GRIDCO for recovering its dues (sales proceeds) in time to save the Corporation from becoming sick. State Government could disinvest up to 25 percent of its holdings in OPGC, when the conditions in the Capital Market are favourable and it is able to get a good premium on the shares. 50 percent of the (disinvestment) proceeds would go for financing Unit 3 & 4 of OPGC and the rest would go to Government for augmentation of plan resources. The Mini Hydro Power Projects should be transferred from OPGC to tile newly formed Hydro Power Corporation for Synergy.

11

Orissa Lift Irrigation Corporation

Should continue by revitalizing / streamlining its activities.

Efforts should be made to hand over the L.I. Points to Community Ownership / Users' Co-operatives for proper functioning and thereby save the Corporation from excess overhead expenditure, avoidable losses and ensure better performance.

OLIC / Water Resources Department should formulate / devise specific measures to increase revenue from Rs.4.00 crore as well as to reduce huge expenditure of Rs.36.00 crore of the Corporation.

12

Orissa Forest Development Corporation

Should continue.

Some Kendu Leaf Divisions with concentration of Kendu Leaf Trade should be privatized.

Its surplus staff should be dispensed with by following the provisions of I. D. Act and also implementing VRS.

It should diversify its activities to new areas such as medicinal plantations, sandal wood plantations, tissue culture, seri culture etc., preferably in Joint Venture with private parties.

The Corporation should take up Joint Venture plantations in degraded forest areas without violating GOI's Policy, with private entrepreneurs offering 51 percent or more of the equity shares to them.

13

Co-operative Enterprises

All Co-operative Sugar factories (except ASKA) and all Co-operative Spinning Mills (including Baliapal & Kesinga, in case of resource constraints to complete them), Powerlooms, all other Co-operative Units including the

Panchayat Industries should be privatized to the extent of 51 percent or more of the total stake of the Government.

The Co-operative Sugar Mills under lease should also be privatized through Joint Ventures.

Amendment to Co-operative Societies Act should be enacted at the earliest opportunity to enable the State Government to privatize these unviable loss-making Units.

Meanwhile, valuation of assets should be undertaken to facilitate privatization after the required enactment.

Agriculture Department to monitor the activities of the restructured ventures after they are privatized through Joint Venture.

14

Orissa State Handloom Development Corporation

This Corporation should be offered to the SAMBALPURI BASTRALAYA, failing which it should be converted into a Joint Venture with Government shareholding restricted to 49 percent.

If the above two arrangements fail, it should be liquidated.

There is a pressing need for retrenchment of surplus workers and partial retrenchment could be effected by adopting VRS.

15

Orissa Textile Mills

The approved BIFR package should be implemented and simultaneously a suitable entrepreneur for Joint Venture 1 privatization of the Corporation should be searched.

16

Orissa Textile Corporation

(Bhaskar

Textile Mills, Jharsuguda).

It should be converted into Joint Venture with Government shareholding not exceeding not exceeding 49 percent.  In case the above arrangement does not materialize, then necessary steps should be taken for total privatization of the Company.

17

New Mayurbhanj Textiles

This should be privatized / liquidated.

18

Orissa

Agro

Industries Corporation

Should continue with the following restructurization measures.

i)    Its Fertilizer business should be stopped.

ii) It should reorganize its activities and concentrate on profitable ventures like manufacturing and sale of Farm Machinery, undertake Drip Irrigation, Land Reclamation, Digging / energization of Tube Wells etc.

iii) Units engaged in manufacturing of Farm Implements and Cattle Feed need be privatized or, put under Joint Venture Management.

iv) Equity support of Rs.2.00 crore could be extended to the Corporation for augmenting its Working Capital and some portion of its Government loan could be converted into equity.

19

Orissa

State Seeds

Corporation

Should continue and its functioning should be improved.

It should concentrate on production of quality seeds through its captive firms and growers of certified seeds and ensure timely supply of seeds by privatizing its retail sales network as far as possible.

20

Orissa State Cashew Development Corporation

Should continue for the time being.

Meanwhile, efforts should be made to convert the Corporation into a Joint Venture Company with private participation.

21

OMCAD

To watch the performance of the Corporation for one more year.

It should revitalize its marketing and sales network and increase the sales price of the nets manufactured by it, as there is a good demand for the product.

It should be merged with Fish Seed Development Corporation under a new name i.e., ORISSA FISHERY DEVELOPMENT CORPORATION to cater to all aspects of fishery – development in the State.

22

Orissa

Fish Seed Development Corporation

This Corporation should be merged with OMCAD, thereby bringing down its overhead expenses and to strengthen its marketing network for marketing fish fry.

23

Orissa Tourism Development Corporation

The Corporation should continue with the following restructuring measures.

i)       Each Panthanivas should be treated as a Strategic Business Unit (SBU) and accordingly its performance should be monitored.  The facilities provided by these Panthnivases should be upgraded and the non-viable facilities should be privatized or leased out to private parties.

ii)      Facilities should be provided for tourists for taking steam / hot spring bath at Taptapani / Atri.

iii)     Emphasis should be laid on low cost tourism by providing cheaper accommodation and food.

iv)     Some 1Bs of Water Resources and Forest Departments could be developed for tourism purpose.

v)      Foreign investment could be tapped by establishing Ocean Park.  Creation of high tech facilities like revolving tower-restaurant, aquarium, phantom houses etc., should be explored.

vi)     Action Plan could be chalked out for development of adequate facilities for middle and low income tourists at different religious places.

vii)    Transport facilities along with package tours should be provided by developing some basic infrastructure in the places like TAPTAPANI, PANCHALINGESWAR etc.

viii)   Some fast food restaurants with South Indian cuisine should be opened at strategic tourist places with affordable price.

ix)     It should venture into construction of a tower consisting of a Revolving restaurants in the top floor fitted with telescope for city viewing, Aquarium in the middle floor and a Phantom house at the ground floor.

x)      The Corporation should make an effort to construct a Large Convention Hall and associated facilities at Bhubaneswar with a sitting capacity for at least 2000 persons.

xi)             The Corporation should make video films covering areas of art,

culture, religion, scenic spots, folk dances and other areas of tourist interests and market the State through different travel / tour operators in and out side the country and through different Embassies to attract tourists.

24

Orissa State Commercial Transport Corporation

Should retrench at least 50 percent of its employees through VRS.  The remaining employees along with the assets of the Corporation could be merged with OMC.

25

26

Orissa Construction Corporation

and

Orissa Bridge

& Construction Corporation

These two Corporations should be allowed to function for one more year independently and their performance should be monitored.  They should be given requisite support / business by Works / Water Resources Department specially in respect of awarding World Bank assisted projects to them.

27

Orissa

Police Housing

& Welfare Corporation

Should continue for and its performance watched for one more year, i.e., till June 1997.

Its performance should be reviewed thereafter and if it stills runs in loss, it should be merged with OCC / OB&CC.

28

Orissa State

Road Transport Corporation

The Corporation should function with the following reorganization measures.

i)       It will function with a total fleet strength of 600.

(400 existing buses + Repair of 100 old lifetime buses + Induction of 100 new buses).

ii)      Retrenchment of about 1500 employees, following due procedure of law, to maintain the bus staff ratio of 1: 8.

iii)     Release of the current year's budget provision of Rs. 3.90 crore in and provide additional budget provision of about Rs.3.00 crore and Ways & Means advance for the balance requirement of funds.

iv)     A Committee under the Chairmanship of Principal Secretary, Finance should be set up for sale of surplus land and other assets of the Corporation by public auction for augmenting funds requirement and for repaying the ways and means advance availed from the Government by 31.03.1997.

v)      Responsibility be fixed for illegal / irregular appointments made during the ban period i.e., between 01.01.1990 and 01.01.1995.

vi)     Provision of need based funds including provision for replacement of condemned vehicles to maintain the fleet strength at 600 buses in the coming year.

vii)    To reduce the financial burden on OSRTC and to ensure timely payment of salaries to CMD, GM (Finance), GM (P&A), Chief of

Vigilance and Labour Officer, posts should be created in C & T Department for these officers.

viii)   The Administrative Department / OSRTC should calculate the detailed financial implication for implementation of the aforesaid reorganization measures and place them before the Chief Minister on

22.08.1996.

29

Orissa State Electricity Board

As restructurization of the Power Sector in the State is on anvil the Committee did not like to have any deliberation on the Corporation.

30

Orissa Instruments Company

The Corporation should be wound up if it could not be privatized.

31

32

Grid Corporation

And

Orissa Hydro Power Corporation

Should continue.

33

Orissa Rural Housing & Development Corporation

The performance of the Corporation should be watched for one year to justify         its continuance.

34

Orissa Mining Corporation

Should continue with the following restructuring measures.

i)       Each of its Mines should act as a cost and profit centre.

ii)      Cost operation of the Mines should be comparable with the private sector.

iii)     OMC should have long term arrangement with local industries for supply of minerals to them for value addition on the basis of prevailing market price.

iv)     OMC should optimize its iron ore crushing and sizing units, establish more such units in Joint Venture and enter in to long term supply arrangements with such local units in private sector for value addition inside the State.

v)      The existing Chrome Ore Benefaction Plant and the China-clay washery should be considered to be put under Joint Venture Management.

vi)     The HRD wing of OMC should be developed for professionalizing its various cadres.

vii)           OMC should consider merger of OSCTC.  It could provide advance to OSCTC to reduce its manpower by above 50 percent before merger under VRS, to repair vehicles and to provide work to OSCTC on professional basis to cut down OSCTC's losses pending merger.

35

Orissa State

Civil Supplies Corporation

Should continue with the following restructuring measures.

i)       Expand and improve its activities in the tribal districts.

ii)      Introduce on line computer network with its various district  offices for better monitoring.

36

Industrial Infrastructure Development Corporation

Should continue.

It should concentrate its activities on acquisition of land for establishment of Industries and provision of infrastructure for the purpose.

It should also aim at providing project consultancy service to industries by entering into strategic alliance with prominent undertakings like MECON / RITES.

37

Orissa State Warehousing Corporation

Should continue.