Chief Minister Sukhvinder Singh Sukhu has emphasized the need to merge several public sector undertakings (PSUs) running at a loss in Himachal Pradesh in order to improve the state's fiscal situation. With debt levels crossing Rs. 90,000 crore, successive governments have struggled to turn around poorly performing state-owned companies that collectively employ over 30,000 people.
Thirteen out of the state's 23 boards and corporations continue accumulating deficits totaling Rs. 5,134 crore as of March 2023. While past attempts were made to combine some units, strong resistance from employee unions stalled the initiatives. The CM is determined to explore consolidation options that can absorb excess staff into other viable PSUs or government roles.
Transport, power and forestry enterprises weigh heavily on expenditures due to their substantial payrolls. The Roadways Corporation, State Electricity Board and Forest Corporation individually retain over 1,000 workers each. Their prolonged losses amounting to hundreds of crores add financial strain.
As the main priority is protecting government funds rather than any single organization, creative restructuring may be evaluated. If executed properly after thorough assessment, such mergers could streamline operations while protecting worker livelihoods. However, meaningful talks with all stakeholders will be fundamental to gaining consensus on sustainable solutions.
The CM faces acomplex test balancing operational efficiency, social responsibility and political realities surrounding this long-debated subject. His next measures will significantly impact the mountainous state's economic well-being for years ahead.
