A senior official at the Ministry of Finance (MoF) said management officials and workers of ailing PEs have been visiting the ministry to make such demands.
“We have to arrange at least Rs 2.5 billion immediately if we are to fulfill their demands,” Tej Raj Shakya, joint secretary at the MoF, told myrepublica.com on Monday. According to Shakya, Nepal Drugs, National Construction Company Nepal, Biratnagar Jute Mill, Butwal Dhago, Herbs Production and Processing Company, Timber Corporation of Nepal, Nepal Orient Magnesite, Nepal Metal Company, National Trading and Janakpur Cigarette Factory among others have been approaching the finance ministry for additional funds.
“Some of the PEs have applied for loan assistance for the arrangement of working capital, while labor unions of some companies are demanding financial assistance on behalf of the public enterprises to clear their outstanding dues,” said Shakya.
Demands for assistance range from about Rs 20 million to Rs 700 million. Janakpur Cigarette Factory has demanded the highest amount while the Herbs Production and Processing Company has demanded the lowest.
Nepal Drug, Herbs Production and Processing Company, Nepal Metal Company, National Construction Company and National Trading have demanded assistance as working capital, while the Janakpur Cigarette Factory, Biratnagar Jute Mill, Butwal Dhago have knocked the ministry´s doors for loan to clear their long standing dues to workers. The Orient Magnesite has demanded fund to repay its loan taken from the Employees´ Provident Fund.
“We are calculating the amount required to clear dues of over 1,100 workers of Biratnagar Jute Mill, who were recently given marching orders under pay off,” Shakya said. According to initial estimation, the total liability to the mills´ workers hovers around Rs 600 million.
Though the government owns only 46 percent stake of the mill, the workers are pressing only the government to clear their dues. Other promoters, who enjoy 54 percent stake, are shying away from their responsibility.
The total loan investment on three dozen public enterprises has reached Rs 83.52 billion till 2007/08, up from Rs 71.74 billion in the preceding year. The government has allocated Rs 800 million in the budget in this fiscal year under the Public Enterprises Reform Program. The program aims to revive the PEs by increasing people´s ownership through open sales of share, appointing chief executives of PEs through open competition, utilizing non-business assets of public enterprises and fixing the benefits of employees based on the public enterprises´ financial health.
prabhakar@myrepublica.com
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