In order to give requisite thrust to the Public Enterprises Reform Programme, the State Government included this programme as one of the components of A P Economic Restructuring Project (APERP) funded by the World Bank. Several benefits accrue to the Government on account of the implementation of the P E Reform programme

• Release of Government resource for redeployment towards infrastructure, technology, health care and education, where Government attention is required;
  
  
• Encourages economic growth, which in turn creates increased avenues for employment, more income and improved quality of life;
  
  
• The Programme helps in macro-economic stability of State’s economy by reducing fiscal deficits;
  
  
• The Programme has an effect on overall standards of governance. It reduces the scope for misuse of public funds, corruption and patronage by removing politicians and bureaucrats from business;
  
  
• It also improves operational efficiency of the enterprise by introducing competition as well as incentive to make good commercial decisions.  Such competition and efficiencies, in turn, would flow back to the consumers and the general public through improved quality of services at reasonable prices