Srinagar, Oct 16: Jammu and Kashmir government is all set to revamp the functioning of loss making public sector undertakings (PSUs) in a bid to make them profit earning corporations.
Most of the public sector undertakings (corporations) in Jammu and Kashmir are running in losses and have become a major burden on the state exchequer.
Centre has now told Jammu Kashmir government to take measures for making the PSUs into profit making corporations.
“Under a new proposal, all the public sector undertakings will work under the Industrial Development Corporation which will be headed by Chief Managing Director, who shall be an IAS level officer. Each corporation will be headed by Executive Director,” said a Managing Director of one of the corporations.
According to him, Centre has also told the Jammu and Kashmir government to provide details of employees, assets, and liabilities of corporations.
“Once the details are finalised, the government may merge few of the corporations and take measures for making them profit earning corporations,” he added.
As per an official document, the Centre has also told the J&K government to provide details about board of directors in corporations.
“The government will appoint new board of directors in several corporations like it did recently in JK Bank. There will be further changes in corporations in coming weeks,” a source said.
The government has already directed the corporations not to make any recruitment or initiate works without the concurrence of the Finance Department.
“No new posts shall be created by the PSUs, autonomous bodies, without the prior concurrence of Finance department. No recruitment shall be made by public sector undertakings, without following a transparent and due process including advertisements inviting applications from eligible candidates irrespective of class of the posts,” an order reads, issued earlier.
As per the directives, no procurement of goods and services shall be made by the public sector undertakings, autonomous bodies, societies aided by state government without following a transparent bidding process.
“Further, PSU, autonomous bodies, societies are instructed to undertake the changes as may be required in their bye-laws, regulations with the approval of competent authority,” the order adds.