Cabinet sub-committee recommends merger of loss-making boards, corps
As part of its efforts to cut wasteful expenditure, the state government is mulling to merge loss-making boards and corporations and shift some of the offices running from rented accommodation in Shimla to other parts of the state.
This is one of the recommendations made by the Cabinet sub-committee on resource mobilisation headed by Deputy Chief Minister Mukesh Agnihotri. The committee has submitted its report to the Cabinet, which will take the final call on its recommendations.
Chief Minister Sukhvinder Singh Sukhu has in the past spoken about the need to shift some of the government offices from Shimla city to other parts of the state where government buildings are lying unused. The Sub-committee has now recommended the shifting of offices with the aim of decongesting Shimla city and save the hefty rent being paid for providing housing facility to government officers in private accommodation.
There are many departments in Shimla that are operating from private accommodation and considering the high rent in the state capital, shifting some offices to other places where government buildings are vacant can save money.
Another major recommendation of the Cabinet sub-committee is the merger of loss-making public sector undertakings (PSUs). The financial health of 27 government boards and corporations continues to be grim. The cumulative losses of 12 of such boards and corporations have mounted to Rs 4,901.51 crore.
Of the 27 boards and corporations, 12 are in the red while 15 have made Rs 20.21 crore profit. Himachal Pradesh State Electricity Board Ltd (HPSEBL) has the highest cumulative loss of Rs 1,809.61 crore, followed the Himachal Road Transport Corporation (HRTC) that has Rs 1,707.12 crore loss.
Successive state governments had toyed with the idea of merging loss-making PSUs, but not much headway was made. Considering the financial crisis the state is facing, the Congress government can merge some of the loss-making boards and corporations despite opposition from employees.
Another recommendation is to encourage educational institutions, especially universities, to adopt a self-sustaining model and generate resources to meet their expenditure.
Shifting of offices out of Shimla suggested
- The Cabinet sub-committee on resource mobilisation headed by Deputy Chief Minister Mukesh Agnihotri has also recommended the shifting of offices out of Shimla city to other places where government buildings are lying unutilised
- The Sub-committee has now recommended the shifting of offices with the aim of decongesting Shimla city and save the hefty rent being paid for providing housing facility to government officers in private accommodation
- The financial health of 27 government boards and corporations continues to be grim
- Of the 27 boards and corporations, 12 are in the red while 15 have made Rs 20.21 crore profit
- The HPSEBL has the highest cumulative loss of Rs 1,809.61 crore, followed the HRTC that has Rs 1,707.12 crore loss
