PM seeks to reopen productive PEs

KATHMANDU, SEP 21: 

The Public Enterprises Directorate Board has said that it will seek possible options to start operating productive public enterprises (PE).

Following a directive from prime minister Dr Baburam Bhattarai, today, to operate those corporations that could be productive, the board will study whether the government can operate them or not, said chairman of the board Bimal Wagle.

The board will invite private players to operate them if the government cannot operate them in a competitive manner, he said, adding that it is better to let the private sector operate these enterprises than to shut them down. “Competitiveness is the basic need for business and the board wants to run the public entities in a competitive manner.” Bhattarai, in today’s meeting, had directed the concerned government agencies to look at the possibilities of running public enterprises that have high productive value. “All agencies should be serious on utilising the resources invested in public enterprises,” said Bhattarai.

The board’s focus is to operate those public entities which have high potential and can contribute to the domestic economy, said Wagle. “The board may invite competitive private players to operate such closed enterprises.”

Meanwhile, the board has hailed the concern of locals, farmers and representatives of different political parties regarding the operation of Birgunj Sugar Mills. 

The government had tried to operate the mill in the past too, said Wagle, adding that the board will take a solid initiative to resume its operations. It has listed 39 public enterprises under the recently formed Public Enterprises Directorate Board. The government had decided to dissolve the state-owned sugar factory — Birgunj Sugar Mills — in 2007 citing lack of profit. Due to its closure, farmers of Parsa district are forced to take their sugarcane — which amounts to 50,000 metric tonnes — for crushing to nearby districts.

Source: THT