Mizoram government to scrap three PSUs due to heavy losses

AIZAWL: Mizoram government has decided to abolish three state public sector units due to heavy losses incurred by the corporations.
State Finance minister Lalsawta told PTI today that the state Cabinet has taken a decision to scrap the Zoram Handloom and Handicraft Development Corporation (ZOHANDCO), the Zoram Electronics Development Corporation (ZENICS) and the Mizoram Agriculture Marketing Corporation (MAMCO).

Lalsawta said that the government's move came after Deloitte, employed to look into the functioning of the five state-owned corporations, recommended that three of them should be abolished.

However, the Mizoram Food and Allied Industries Development Corporation (MIFCO) would be privatised and the Zoram Industrial Development Corporation (ZIDCO) would be restructured to ensure that it earns profit in the future, he said.

The latest report of the Comptroller and Auditor General of India recently tabled in the state Assembly said that the accumulated loss of the state-run PSUs ran into crores of rupees.

Lalsawta said while majority of the employees of the PSUs to be abolished would be given voluntary retirement under the 'Early Retirement Rules', some employees might be absorbed in the state government departments.