Restructuring the Public Sector in West Bengal
Policies, Practice and Lessons Learnt

Faced with rapidly declining performance of its Public Sector Undertakings (PSUs), the Government of West Bengal (GoWB) initiated the process of restructuring by freeing the resources committed to its public sector undertakings to the extent possible, for redeployment in social and infrastructural development sectors to further economic growth in the State. Accordingly, Public Enterprises Department (PED) was assigned the task by GoWB, to evolve a transparent and consensual framework for the restructuring of loss-making PSUs. Based on PED recommendations, GoWB decided that its loss-making PSUs that were becoming increasingly dependent on budgetary support, would be restructured in order to: (a) unblock the assets of PSUs that are structurally unviable for deployment in economic activity, and the released resources would be used for social development, (b) achieve viability under continuing ownership of Government in respect of PSUs that have potential to do so without much investment, through a process of restructuring of their business, financial liabilities and administration including manpower, and (c) achieve viability through a transparent Joint Venture transformation process in respect of PSUs requiring capital investments to achieve viability.

Post Date : 10 Maret 2006