MFDC recast cleared

Nearly two years after the Maharashtra Board for Restructuring State Enterprises (MBRSE) issued its order for reviving the Maharashtra Fisheries Development Corporation (MFDC), the state's cabinet of ministers on Wednesday cleared the proposed restructuring plan.

Revealing this chief minister Sushilkumar Shinde told mediapersons that the MBRSE order (of revival) had been cleared by the cabinet. Incidentally, the recommendations of closure or restructuring of state public sector undertakings that are made by the MBRSE are binding upon the state government.

The board had issued its order on December 13, 2002 when it concluded: "A decision on the future of MFDC can only be taken after the following recommendation are acted upon and the ability of the Corporation to survive without financial assistance, as claimed by it, is established over a period of 12 to 18 months, while our recommendations are simultaneously implemented.

The MBRSE had spelt out a revival programme that included MFDC immediately taking steps to prepare an action plan to complete pending audit of accounts till the financial year ending March 31, 2002, list out all assets and properties of the corporation, establish clear title of land and properties and crystallize/settle the contingent liabilities specially in respect of BPT Godowns No.1773 and 158 in which only government agencies are involved and implement all projects in hand with in a period of 12 months.

Similarly, in his order then MBRSE chairperson Sharad Upasani directed that: "During this period the corporation should concentrate on consolidation of its present activities to make it financially viable and desist from taking on any new projects or activities that would create long term liabilities."

The Board does not support the proposal of the Corporation of taking up activity of Fish Seed farm. Regarding the existing activities relating to "supply of prawn seed" and "fish seed farm", the Board fully endorses the stand of representative of the State Government that the Corporation can continue the same so long as these activities are self financing and does not add permanent liabilities or employees on the role of the Corporation."

The MBRSE also recommended a rethink on the policy changes made by the sate government in January 2002 in respect of leasing of tanks , as these could encourage subleasing by cooperatives to private parties at the cost of government revenue.

"The revised policy has resulted in the state government loosing revenue and at the same time such revised policy neither ensures that benefits reach weaker sections of the fisherman's society nor it optimizes fish production in the state," the order said.

The board also recommended the appointment of younger competent officers as managing director of MFDC with a tenure of at least three years as well as professional experts from the field of acquaculture, finance and management on the Board of Directors of the Corporation to guide him the MD.

" It is necessary to keep the number of political appointees to the minimum and in any case should not exceed one third of the total number of directors appointed. The Board feels that the Corporation is still a very useful vehicle to attract additional funds under GOI Schemes especially for infrastructure facilities such as "Ice Plant Projects".