Public Sector Undertakings are in a sense almost at par with the Government Departments. Government invests in them and expects them to supplement the economy of the state besides providing employment to a large number of people both skilled and unskilled. If a PSU is run efficiently and in accordance with the guidelines set forth by the Government, it contributes immensely to the wellbeing of the economy of the State. However, there are certain rules and norms laid down by the Government for efficient functioning of a PSU.
An important clause in the MoU concluded with the PSUs is that they have to hold Annual General Meetings (AGMs) within a financial year probably after the Government introduced new budget in which the work done and work pending reports have to be submitted and discussed. The Governor presides over the annual general meetings. In a recent communication to the Chief Minister, Governor N.N. Vohra has once again reminded that for quite some time he has been insisting on the Government that the AGMs of PSUs is overdue as it has not been held for many years in the past. The Governor has written to the Chief Minister saying that he is being flooded with letter from businessmen and others asking why the Government is not pursuing the PSUs to hold their annual general meetings regularly so that the Government would come to know of its rating among the states that have seen through the annual meetings of the undertakings. We are unable to gauge what could be the reasons for the State Government to soft paddle the matter and demonstrate no eagerness to impress upon the concerned to hold annual meeting. Such meetings are mandatory and if these are delayed strong reasons for delay have to be produced to convince the people and the stakeholders that no option other than that of delaying the AGM would work. The Governor is reported to have urged the Chief Minister to direct all Administrative Secretaries and Managing Directors of Public Sector Undertakings to strictly adhere to the statutory provisions of the Companies Act, 2013 and ensure that the Annual General Meetings are held within the legally stipulated periods. In a strong action the Governor has refused to entertain any letter or request from the corporate house making even acceptable suggestions unless these are routed through the Chief Secretary and seen by the Chief Minister.
We think that the Governor has taken the right stand in this issue. There are some lacunae that bedevil the functioning and output of some of the PSUs and there are other PSUs as well whose performance has been satisfactory and they deserve to be provided with incentives. Particularly, now that the economy of the State is gradually showing improvement, the functioning of public service undertakings shall have to give their account and assessment of how they are contributing to this syndrome of economic rejuvenation.
It has also to be noted that some of the PSUs have become liabilities because their performance is not up to the mark and they are running on deficit. Such PSUs need to be brought under discussion and it has to be seen why their performance is unsatisfactory and what measures need o be adopted to improve their health. This is in the general interest of the society.
The Government has got the annual budget for the financial year 2018-19 passed in the Legislative Assembly. It is of much importance that the PSUs make an impartial and pragmatic assessment of the impact of various financial reforms announced by the Finance Minister in winding up the debate on the budget. How their units are going to absorb the reforms and how they are going to make good use of these are the important matters that need a fair and open discussion. We hope the Government and especially the Chief Minister will find convenient time to insist upon the PSUs to call their annual general meeting and disuse the matters of urgent nature.
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