Karnataka Temperance Board among 7 recommended for closure

Bengaluru: The Karnataka Administrative Reforms Commission-2 (KARC) has recommended closure of seven and merger of nine state-run boards and corporations.

The KARC-2, headed by senior lawmaker RV Deshpande, submitted its 9th report to Chief Minister Siddaramaiah on Thursday. The report has 449 recommendations.

The seven entities recommended for closure include the Karnataka State Temperance Board for which the government recently appointed Sharanappa Saladpur as chairperson.

The Karnataka State Social Welfare Board, Karnataka Cooperative Poultry Federation, Karnataka Pulpwood Ltd, Karnataka State Agro Corn Products Ltd, Mysore Lamp Works Ltd and Karnataka Agro Industries Corporation Ltd have been recommended for closure.

"The Commission reviewed the functioning of 82 boards and corporations across departments, assessing their relevance, financial sustainability, and functional efficiency. Based on these assessments, the Commission has made recommendations for merger, closure, or restructuring of certain entities to eliminate duplication, enhance accountability and optimize the use of public resources," the report stated.

Closure of the Temperance Board was recommended by the first KARC headed by Harnahalli Ramaswamy in 2001. "The Commission has noted the conflict where the government profits from liquor sales, while the Board attempts to reduce consumption through awareness. Hence, it is recommended to close the Board," the report stated. The Board's work should be continued by the department of information & public relations and four employees should be moved somewhere else, it added.

The nine entities recommended for merger are Karnataka State Aids Prevention Society, Karnataka Silk Industries Corporation Ltd, Ahara Karnataka Ltd, Bengaluru Suburban Railway Company Ltd (B-RIDE), Karnataka Handloom Development Corporation Ltd, Mysore Chrome Tanning Company Ltd, Karnataka Cashew Development Corporation, Karnataka State Sericulture Research and Development Institute and Command Area Development Authority.

"Some of the PSUs have been ordered either for closure or merger and deadlines have been fixed. However, the status of the PSUs remains active as they are not closed or merged. Hence, responsibility for the delay in winding up should be examined, and a clear timeline for closure of all similar inactive undertakings should be fixed by the Finance Department in coordination with the concerned administrative departments," the report stated.

Deshpande said the KARC-2 has made a total of 5,677 recommendations covering 42 departments. This includes 449 new recommendations in its 9th report.

Of the 5,228 recommendations from the previous eight reports, Deshpande said 1,852 were implemented and the rest are partly implemented, under implementation, under examination and unaccepted.