Maharashtra restructuring panel gets helmsman

Government names Michael Pinto chairperson, M R Umarji member

Three months after Maharashtra's disinvestment mechanism was virtually dismantled, the state government has now announced the appointment of Michael Pinto as the chairperson of the Maharashtra Board for Restructuring State Enterprises (MBRSE), with effect from March 1.

M R Umarji has been appointed as the member of the board.

A resolution issued by the state government says, "Whereas vacancies of the chairperson and members of the said board have occurred due to the superannuation of the chairperson of the MBRSE and resignation given by the members, the government considers it expedient to appoint a new chairperson and a member on the board."

Former chairperson Sharad Upasani had stepped down the office on October 1, 2003, upon attaining superannuation, while the board members Prabhakar Chitale and Ravi Narain resigned subsequently on November 1, 2003.

However, Upasani's exit from the MBRSE as well as the resignations by the two members came in the wake of the state government's inability to implement a single order of restructuring or disinvestment as recommended by the MBRSE.

The MBRSE was set up under Section three of the Maharashtra State Enterprises (restructuring and other special provision) Act, 2000.

This also mandated that the recommendations of the board, a quasi-judicial body much like the state's Electricity Regulatory Commission, are binding upon the state government.

However, the state government had failed to comply with the schedule of disinvestment and closure and restructuring orders issued in respect of eight public sector enterprises.

The Upasani-headed board had issued orders to disinvest the state government's stake in Mafco Ltd and Chitali Distilleries.

It had also directed that Haffkine Bio-Pharmaceuticals Corporation be referred to it again for disinvestment instead of going for restructuring.

The disinvestment of Mafco was envisaged to be completed by November 2004, but the inaction on the MBRSE orders have put a question mark on the state government's intention to comply with the board's recommendations.

One of the five bidders shortlisted for Mafco had already been finalised by MBRSE before it issued orders.

In the case of Chitali Distilleries, the process of finalising the shortlisted bidders is reaching completion.

Even after a couple of years of the MBRSE ordering the closure of the Maharashtra Land Development Corporation (MLDC), the state is yet to act upon the order.

This is despite the fact that MLDC is one of the loss-making corporations.

The restructuring recommendations of the MBRSE for the loss-making Maharashtra State Road Transport Corporation with time schedules for reaching target milestones have also remained on paper.