The Times of India reports, “Ventilator economics,” “Behind the rut: ‘Corruption, over-staffing and interference’” (Mar. 3, 2016) are informative and educational.
The report says, Kerala State Beverages Corporation Ltd., the government agency selling alcohol to people, is the most profit-generating government company in the state. It made Rs. 220.59 crore ($33m) net gain in FY 15 nearly one third of the total profit of SLPEs (state-level public sector enterprises.) Kerala Financial Corporation is the third most profit-generating enterprise of the government, with a financial gain of Rs. 68.81 crore ($10.3m), which is roughly one tenth of the total profit of state public companies.”
The report also points out the reasons for the pathetic state of government-run enterprises. “Corruption, over-staffing, and growing interference of political parties are the reasons behind growing losses of public sector companies.”
It seems the Kerala government industrial policy appears to be operate the government enterprises to promote inefficiency, financial loss and patronage. And provide overpriced alcohol to get people drunk, so that they don’t notice the mismanagement, misdeeds and ineptitude [2, 3, 4] of the Kerala government.
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