Keeping in view the successful implementation of Phase – I Programme, Phase – II Programme has also been drawn and approved by the Government.

 

Phase – II Action Plan presents the classification of Public Enterprise and sequence for the review of Public Enterprises.  The order of priority and the order in which the option studies / Action Plans will be prepared by the Implementation Secretariat with the help of expatriate Consultants is at Annexure – A.  The enterprises included in Phase – II Action Plan have been classified into the following 6 categories :

1. The enterprises which prima facie have ceased to have any relevance in the post liberalisation scenario;
   
2. Enterprises, which are engaged in manufacturing and trading activities where private sector has already significant presence;
   
3. Enterprises that Government considers, for any specific reasons, need priority for privatisation or restructuring;
   
4. Enterprises that have both commercial and social obligations;
   
5. Enterprises whose products are not available in the private sector ; and
   
6. Large labour intensive enterprises that have high social and political costs in terms of redundancy and where considerable preparatory work will be required for retraining and redeployment.

The study on each enterprise will review all relevant aspects and make specific recommendations as to what method should be followed for privatisation or restructuring to get optimum results.  All possible options for privatisation such as sale of business, sale of assets, strategic alliance, division of business before privatisation, placing the company on stock exchange etc., will be considered.

 

The Implementation Plan for Phase II Public Enterprise Reforms is  based on the intention to privatize / restructure / wind-up 15 enterprises per year.  Studies and /or Action Plans will be completed for each enterprise so that the proposed action plan for each enterprise may be presented to the Cabinet Sub Committee for approval. 

 

PEs which are not included in Phase – II,  but to whom VRS will be applied are at Annexure – B.

 

Implementation of VRS & SSNP:

 

In order to improve operational efficiency, financial health and cost effectiveness of the enterprises, VRS implementation is a general requirement independent of / without reference to any study as it is a felt need.  Hence, 15% of existing manpower of those PEs that are labour intensive, are taken for VRS implementation over a 5 year period and 30% of existing manpower for all the other enterprises which have social obligations. On this basis the VRS costs inclusive of ex-gratia, gratuity and encashment of un-availed earned leave are estimated at Rs. 1475 crores.

 

Requirement of funds under SSNP has been estimated at Rs. 40.25 crores.Public Enterprise Department of Andhra Pradesh state Government is an independent wing with the responsibility of monitoring the health of SLPE's as well as the privatization/restructuring of the enterprise. the privatization /restructuring activity is handled by a separate wing of PED known as Implementation Secretariat.

Appendix A - Time Table for Option Studies / Action Plans

	Enterprise
2001
	Co-operatives Category II
1	Sri Raja Rajeswara Co-op Spinning Mills Ltd., Sircilla.
2	Karimnagar Co-op Spinning Mills Ltd.
3	AP Co-op Spinning Mills Federation Ltd.,( Spinfed)
	Corporate Category II
4	Godavari Fertilisers and Chemicals Ltd. (GFCL)
	Corporate Category III
5	AP State Financial Corporation (APSFC)
6	AP Industrial Dev Corporation Ltd. (APIDC)
	Corporate Category IV
7	AP Housing Board
8	AP Health and Med. Housing. Infrastructure Dev. Corpn.
9	AP State Police Housing Corporation  Ltd.
10	AP Technology Services Ltd.
2002
	Corporate Category I
11	AP State Non-resident  Indian Inv.  Corpn. Ltd. (ANRICH)
12	AP Electronic Dev Corporation Ltd.  (APEDC)
	Co-operatives Category I
13	AP State Co-op Consumers Federation Ltd.  (FEDCON)
	Corporate Category II
14	AP State Warehousing Corporation
15	AP Co-op Oil Seed Growers Federation  Ltd. (OILFED)
16	Sri Krishna Devaraya Co-op  Oilseeds Growers Union Ltd.
17	Sri Vijayavardhini Co-op  Oilseeds Growers Union Ltd.
18	AP Dairy Dev. Corporation Ltd.
19	AP Dairy Dev. Co-op Federation Ltd. (APDDCF)
20	Krishna Dist. Co-op Milk Producers Union Ltd. Vijayawada.
21	Chitoor Dist. Co-op Milk Producers Union Ltd. Chittoor.
22	Kurnool Dist. Co-op Milk Producers Union Ltd. Nandyal
23	Nellore Dist. Co-op Milk Producers Union Ltd. Nellore.
24	Nizamabad Co-op Sugar Factory Ltd.
25	West Godavari Co-op Sugars  Ltd.
26	The Chittoor Co-op Sugars Ltd.
27	Kovvur Co-op Sugar Factory Ltd.
28	Sri Venkateswara Co-op Sugar Factory Ltd.
29	Amadalavalasa Co-op Sugars Ltd.
30	Anakapalli Co-op Sugars  Ltd.
31	NVR Co-op Sugars Ltd.
32	Palair Co-op Sugars Ltd.
33	Cuddapah Co-op Sugars Ltd.
	Co-operatives Category III
34	AP State Handloom Weavers Co-op Society Ltd. (APCO) - study for restructuring
	Corporate Category IV
35	AP State  Seeds Dev Corpn. Ltd. - study for restructuring
36	AP State Film Television and Theatre Development Corpn. Ltd.
37	Leather Industries Dev Corpn  of  AP (LIDCAP) - study for restructuring
38	AP Foods
2003
	Co-operatives Category II
39	AP State Co-op Rural Irrigation Corpn  Ltd
40	The Hyderabad Agricultural Co-op Association (HACA)
41	The Federation of Sericulturists and Silk Weavers Co-op Societies Ltd. (SERIFED)
	Co-operatives Category IV
42	AP Rural Ele. Supply Co-op Society, Kuppam
43	AP Rural Ele. Supply Co-op Society, Analapalli
44	AP Rural Ele. Supply Co-op Society, Jogipet
45	AP Rural Ele. Supply Co-op Society, Kadiri (E)
46	AP Rural Ele. Supply Co-op Society, Kadiri (W)
47