Government of Orissa decides to close its sick corporations

Few years back, during the time when Bharatiya Janata Party (BJP) took the decision of disinvesting from the corporations run by the government, it brought criticism and protest from various quarters. During the time of rule, it disinvested and sold units which were incurring heavy losses.

In the present government, disinvestment has taken the backseat and there are industrial units which are still rotting in neck-deep losses and mismanagement. The Comptroller and auditor general of India has recommended closure of such thirty three corporations in Orissa due to bankruptcy. In the report, it is believed to be stated that as these government corporations are unable to fulfill the mission kept by the government, those need to be shut down forthwith. A separate cell will be set up to expedite the process of their closure.

Some of these organizations are IDCOL Kalinga iron works, Orissa power transmission corporations, Orissa rural housing and development corporations etc. Rampant mismanagement and corruption and consequent losses are causes behind bankruptcy of these organizations.