The state cabinet meeting on August 25 is likely to discuss this issue, which was already included in the agenda of cabinet meeting of August 18 but was postponed after BJP's decision to boycott it.

Ironically, the already cash-strapped government has been advised by the planning and finance department not to further "burn its fingers" by pursuing this plan. The department has also warned that the government will have to consider similar proposals of already loss-making and chronically sick undertakings.

It must be mentioned that the previous Congress government had decided to wind up these corporations in 1992. The government, however, failed to implement its decision in view of burgeoning pressure from employees and a writ petition in the court of law. Moreover, the public-undertakings committee of the state legislature had strongly recommended the closure of Konkan Development Corporation in January 1997. However, no decision was yet taken on this front.

Of the 890 employees from these corporations and their subsidiaries, so far 403 have accepted the voluntary retirement. The government will have to take care of the rest if it revives these corporations and their subsidiaries.The subsidiaries of Vidharbha Development -- Vidarbha Tanneries and Gondwana Paints & Minerals -- are in the process of liquidation and the employees' unions have given their consent for it.

The employees of Konkan Development's subsidiary Sahyadri Glass Works have already accepted voluntary retirement and as per the Board for Industrial and Financial Reconstruction's directive, the liquidation has already begun. Of the total seven subsidiaries of Marathwada Development, there are no employees in Kinwat Roofing Tiles, while the balance six have been closed since a long time.

The Marathwada Development's board had given its consent to liquidate subsidiaries -- Kinwat Roofing Tiles, Dairy Development Corporation of Marathwada and Marathwada Ceramics Complex -- way back in 1996. The government is of the view that the revival of Godavari Garments and Leather Industries Corporation of Marathwada, other Marathwada Development subsidiaries, was possible only after sale of its movable property. A similar proposal has been prepared for the revival of Parbhani Agriculture Cow Protection.

As far as Vidarbha Development is concerned, recovery worth Rs 22.45 crore under the seeds-capital scheme was to be paid as on March 31, 1997 and under the collective incentive scheme, the corporation will have to recover Rs 10.65 crore. The government feels that the speedy recovery of dues with the help of existing staff will help overcome the administrative and office expenses.

However, if these corporations fail to meet these expenses from the recovery of arrears, the state will have to step in and pump in additional funds.