The Punjab State Tubewell Corporation Limited, that was under constant threat of being wound up, is finally out of the list of public sector undertakings being closed down or disinvested in Punjab. According to sources, the Punjab government has decided to infuse new life in to PSTCL. As a first step, a decision has been taken to change the name of the corporation to Punjab State Water Management and Development Corporation.
The Punjab government has not only decided against its closure but also to assign other responsibilities to it. It will now look after drip irrigation, sprinkler irrigation, maintenance of canals and computerisation in irrigation department.
The change in government’s stance became clear in the meeting of managing directors of various state PSUs chaired by principal secretary industries on October 5. The minutes of the meeting circulated on November 16 directed managing directors of various PSUs to proceed for final winding up or disinvestment. However, there was no mention of PSTC, thus making it clear that it would continue. Sources said that the Cabinet has given its nod to the continuation of PSTC. Also, a formal request to registrar of companies at Jalandhar has been sent for incorporation of the new entity-Punjab State Water Management and Development Corporation.
Om Parkash, president PSTC employees union when contacted confirmed that the process to change the corporation’s name was on and the government has assigned new responsibilities to the corporation. He disclosed that union representatives in a meeting with the minister of irrigation and secretary irrigation and power in October explained that it was wrong to talk of profit or loss in case of PSTC as it was formed for social activities.
Also that it looked forward to the Union government and the state government for funds. After the meeting the government decided to cut PSTC out of the list of PSUs being shut down or disinvested, he claimed.
The PSTCL was established in 1970 under the Companies Act, 1956, to install deep tube wells hence increase the irrigation potential. It reported a loss of Rs 4.33 crore in 2001-02. The accumulated losses continuously increased and reached the figure of Rs 49.98 crore in 2000-01 when Punjab government appointed a Disinvestment Commission which recommended its closure.
Report of the Commission clearly recommended that “The corporation should be closed in a phased manner over a period of five years by transferring the work of lining of water courses and its restoration, operation and maintenance of tube wells to PRIs and users’ associations, keeping in view the constitutional imperative”.