Chief Minister Basavaraj Bommai on Monday said that the State government will bring a special programme to deal with the public sector undertakings to increase their profitability.
“The special programme on PSUs will consider their conditions. Profits of profitable PSUs will be scaled up and those that can be revived will be revived. The Padmanabha Committee set up in 1994-1995 had been gathering dust. I have called for the report,” the Chief Minister said after inaugurating “Nalwadi Krishnaraja Wadiyar Srigandhavana” in the State-owned Karnataka Soaps and Detergents Ltd premises here. “We will take action based on the report. I want to bring in an atmosphere of profitability and we are working towards it,” he said.
The State, he said, has so far signed memoranda of understanding for investments in industrial sector worth ₹1.21 lakh crore, including ₹65,000 crore at Davos, during his tenure. “We are not only interested in capital investment, but also getting technology, jobs for Kannadigas and new research and development.”
Urging the KSDL to scale up the business by expanding product profile, infusion of fresh capital and modernisation, the Chief Minister said: “It is time to think about the scope of business. Currently, the KSDL has a turnover of ₹1,000 crore with a profit of ₹200 crore and a net profit of ₹130 crore. There is scope to increase the turnover to ₹10,000 crore.”
Referring to the FMCG cluster in Dharwad, Mr. Bommai said: “KSDL should set up an unit in the FMCG cluster and take advantage of tax concessions and incentives and increase production. Similarly, the same tax concessions and incentives should be provided to KSDL in Bengaluru too.”
When he asked a senior KSDL official if he had seen the order setting up the FMCG cluster, the official feigned ignorance stating that he was new. In response, the Chief Minister said: “All FMCG players are setting their units in the cluster to take advantage of the concessions. The order has been published in the newspaper. You should see and you should know what is happening in the government.”
The Chief Minister said that if the KSDL invests in FMCG cluster and scale up its capacity over the next three years the annual turnover could be ₹5,000 crore to ₹6,000 crore. “Maintain quality of sandal oil and maintain integrity. Government will approve all the proposals that will be brought by KSDL.,” he said.
State to unveil sandalwood policy
The State Government will unveil a policy on sandalwood cultivation, which had been announced in the state budget, in the next few weeks. “We will unveil the sandalwood policy in the next few weeks. The policy had been announced in the budget. The policy will help in expanding the sandalwood cultivation and ensure availability of sandalwood in the market,” Chief Minister Basavaraj Bommai said on Monday.
