Govt to bury all sick corporations and units
Source: The Sangai Express
Imphal, January 16:
Decks are cleared for signing a Memorandum of Understanding between the Manipur Government and the Centre for providing Rs 125 crores to Manipur as Central assistance.
The step is being seen as an effort by the Manipur Government to bring itself out of the acute fiscal position.
The State Principal Finance Secretary V Chhiber will sign the MoU with the officials of the Union Finance Ministry in New Delhi on January 29.If the MoU is signed Manipur will be the fifth State to sign such a deal, an official source told this reporter.
Two rounds of discussions have already been held between officials of the State and the Centre to finalize the deal.
After the signing of the MoU Manipur will get Rs 125 crores as one time grant, above the Rs 60 crore monthly entitlement, the official source said.
The Centre has set a condition for signing the MoU.
The condition is that the State will have to abolish all the "non-productive corporations" and sick industrial units in Manipur.
The State Government has agreed to fulfill the condition and it has decided to close down all the corporations barring Handloom and Handicrafts Corporation.
The step is to enable the State to meet the non-plan expenditure.
Sources said most of the corporations have become nonproductive bodies.
The Governor-in-Council will give its final approval to close down the sick corporations and industrial units to fulfill the condition set by the Finance Ministry, the source said.
He, however, refused to name the corporations.
He said barring handloom and Handicraft Corporation all the sick corporations would be abolished.
According to a reliable source, the list includes Manipur State Road Transport Corporation, Vanaspati and Allied Industries, Drug and Pharmaceutical Company, Cycle Corporation, Pulp and Allied Industries and TD Corporation.
About the fate of the employees working in these corporations and industrial units the official said Voluntary Retirement Scheme benefits and other benefits would be made available to the employees.
The State Government has given details to the Planning Commission, he said.
The official said to revive the Magfruit Industries, located at Mantripukhri and established under the Commerce and Industries Department a sum of Rs 1.2 crore has been earmarked.
The unit stopped functioning after it was burnt down, he said adding the Government is paying a serious attention to this, sources said.
He claimed that the administration under the President's Rule has drastically cut down expenditure.
The expenditure is concentrated on procuring medicines and improving road conditions, he said.
The State's overdraft has crossed Rs 142 crore mark as on January 11.