Orissa Public Enterprise Reform Programme:
Since 1996-97, the Department of Public
Enterprises has been overseeing the Orissa Public Enterprise Reform Project which has the
· To create competitive market conditions
consistent with the policy of liberalisation and removal of protectionism by placing
commercial activities in the hands of private owners.
· To eliminate budgetary support for loss making
PSEs and thereby make available the funds generated for much needed programmes in the
social sector, such as health and education.
· To prevent further loss of capital by
undertaking speedy reorganisation of loss making PSEs, as with the passing of every
additional year public enterprises face greater difficulty with the realisable value of
assets progressively decreasing.
· To mitigate the suffering of employees in loss
making undertakings, who have not received their wages and salaries for months together,
by providing to them a package towards severance of their service and thereby allow them
with a clear mandate to pursue their own alternative plans and programmes.
· To enable greater private initiative and
facilitate infusion of private capital into these enterprises for undertaking expansion,
technology up-gradation and modernisation proposals.
· To facilitate higher productivity and higher
value-added for each of the factors of production such as capital, labour and other
resources through more efficient deployment.
· To free the Government from those economic
activities where the private sector can play an effective role, thereby making the
government machinery available for other purposes.
Honourable Chief Ministers statement:
More than half the public sector units in
Orissa are already closed owing to several reasons. The few operational ones are losing
money in a situation where the state is so hard pressed for finances. Several of the
public sector undertakings do not meet the objectives for which they were set up. In most
cases, the private sector has overtaken them despite years of government protection. The
continuing financial burden of the PSUs increases our States fiscal deficit and reduces my
Governments ability to pursue welfare and development schemes for the poor, which Orissa
needs far more than anything else.
Times have changed and so we need to change
our thinking as well. Unless we do so, we will be of less interest to investors, and
consequently our youth and future generations will suffer, despite the hard working people
of Orissa and despite the states abundant natural resources.
It is estimated that everyday PSUs in the
State haemorrhage about four and half crores of Rupees. This precious money could have
built more than 250 schools or 300 kilometers of metalled road everyday. The losses are
mounting everyday, and so is our indebtedness.
There are not many options we have; my
Government is committed to protecting the interest of workers of PSUs, who for no fault of
theirs today find themselves in a desperate situation.
Change is difficult, and our workers are
surely more interested in continuing with their jobs and the only way to ensure this for
the few thousand PSU workers in the State is to offer these units to the private sector
for continuing production or activity.
This is in line with what is happening in India and
elsewhere and also has been undertaken in Orissa in the past with a fair degree of
success. Privatisation or disinvestment is an effective way to continue economic activity
and preserve jobs.
VRS & VSS
Restructuring of the states public
sector enterprises involves rightsizing of the workforce in state public enterprises. This
helps in mitigating the trauma of certain sections of workers whose salaries and other
benefits have remained unpaid for months. Several units are inoperative, and hence the
workers in such cases have no work.
The Voluntary Retirement
Scheme (VRS) and the Voluntary Separation Scheme
of the Government of Orissa for public sector employees are administered by the Department
of Public Enterprises.
Office Memorandum envisaging clarification on Voluntary Retirement /
Voluntary Separation Schemes.
Social Safety Net Programme:
Enterprise Reforms Programme runs the
net Programme (SSNP) intended to train and
rehabilitate the displaced employees. Such a programme is assisting large number of
skilled and capable retired persons to take up alternative employment and thus enable them
to mitigate the trauma of joblessness. The programme includes the following
Survey/ counselling for adjudging the skill set, aptitude
capability and needs of individual workers and offering them vocational guidance.
In-depth counselling for identifying available options
for workers and exploration of opportunities including ad judgement of capability and
offering skill up-gradation or acquiring new skills, which could improve ones
chances for alternative source of earning.
Free vocational training orientation and guidance for
alternative livelihood through either wage-employment or self-employment venture. .
Under the SSNP, out of
the target group of voluntarily retired workers, 7,277 had been surveyed, 6791 have been
counselled and 1,486 have been either retrained or are undergoing training as on 31st