<p>The state government has decided to close three public sector enterprises, including the Karnataka Agro Industries Corporation (KAIC), which will lead to small savings by cutting administrative expenditure while freeing up crores of equity parked in them.</p>.<p>Along with the KAIC, the government will shut down the Karnataka Antharaganga Micro Irrigation Corporation.</p>.<p>This decision was taken at a meeting chaired by Agriculture Minister N Chaluvarayaswamy on Friday.</p>.<p>The government will also merge the Karnataka Silk Marketing Board (KSMB) with the Karnataka Silk Industries Corporation (KSIC).</p>.<p>Chaluvarayaswamy said he decided to close the KAIC and the Antharaganga Corporation because they were redundant. </p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/national/lok-sabha-nod-to-bill-to-repeal-76-redundant-obsolete-laws-1241319.html">Lok Sabha nod to bill to repeal 76 redundant, obsolete laws</a></strong></p>.<p>"In the case of KAIC, the proposal to close it down was first made by the finance department way back in 2003. It has come to fruition now," Chaluvarayaswamy told <span><em>DH</em></span>. The minister said the KAIC was creating "unnecessary expenditure" because everything related to industries allied with agriculture was being done by his department. </p>.<p>It is a similar case with the Antharaganga Corporation. "It has just 5-6 officers with no work. The minor irrigation department is doing all the work. Closing this down won't affect the ongoing work," Chaluvarayaswamy said.</p>.<p>Karnataka has 125 state-run public sector enterprises, including six statutory corporations and 119 government companies. Thirteen government companies are inactive - KAIC, the Mysore Tobacco Company, Karnataka Pulpwood Ltd, Karnataka State Veneers Ltd, the Mysore Match Company Ltd, the Mysore Lamp Works, Mysore Cosmetics Ltd, the Mysore Chrome Tanning Company, NGEF, Karnataka Telecom Ltd, the Mysore Acetate & Chemicals Company, Bangalore Suburban Rail Company Ltd and Vijayanagar Steel Ltd. </p>.<p>According to a recent Comptroller & Auditor General (CAG) report, the KAIC has a negative net worth of Rs 405.05 crore. The state government has Rs 7.54 crore equity and Rs 69.98 crore in loans in this corporation. The KSMB has a negative net worth of Rs 17.79 crore while the government's equity is Rs 31.45 crore and loans of Rs 22 crore. </p>.<p>The Finance Department is also pushing the government to close redundant corporations and boards, sources said. </p>
<p>The state government has decided to close three public sector enterprises, including the Karnataka Agro Industries Corporation (KAIC), which will lead to small savings by cutting administrative expenditure while freeing up crores of equity parked in them.</p>.<p>Along with the KAIC, the government will shut down the Karnataka Antharaganga Micro Irrigation Corporation.</p>.<p>This decision was taken at a meeting chaired by Agriculture Minister N Chaluvarayaswamy on Friday.</p>.<p>The government will also merge the Karnataka Silk Marketing Board (KSMB) with the Karnataka Silk Industries Corporation (KSIC).</p>.<p>Chaluvarayaswamy said he decided to close the KAIC and the Antharaganga Corporation because they were redundant. </p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/national/lok-sabha-nod-to-bill-to-repeal-76-redundant-obsolete-laws-1241319.html">Lok Sabha nod to bill to repeal 76 redundant, obsolete laws</a></strong></p>.<p>"In the case of KAIC, the proposal to close it down was first made by the finance department way back in 2003. It has come to fruition now," Chaluvarayaswamy told <span><em>DH</em></span>. The minister said the KAIC was creating "unnecessary expenditure" because everything related to industries allied with agriculture was being done by his department. </p>.<p>It is a similar case with the Antharaganga Corporation. "It has just 5-6 officers with no work. The minor irrigation department is doing all the work. Closing this down won't affect the ongoing work," Chaluvarayaswamy said.</p>.<p>Karnataka has 125 state-run public sector enterprises, including six statutory corporations and 119 government companies. Thirteen government companies are inactive - KAIC, the Mysore Tobacco Company, Karnataka Pulpwood Ltd, Karnataka State Veneers Ltd, the Mysore Match Company Ltd, the Mysore Lamp Works, Mysore Cosmetics Ltd, the Mysore Chrome Tanning Company, NGEF, Karnataka Telecom Ltd, the Mysore Acetate & Chemicals Company, Bangalore Suburban Rail Company Ltd and Vijayanagar Steel Ltd. </p>.<p>According to a recent Comptroller & Auditor General (CAG) report, the KAIC has a negative net worth of Rs 405.05 crore. The state government has Rs 7.54 crore equity and Rs 69.98 crore in loans in this corporation. The KSMB has a negative net worth of Rs 17.79 crore while the government's equity is Rs 31.45 crore and loans of Rs 22 crore. </p>.<p>The Finance Department is also pushing the government to close redundant corporations and boards, sources said. </p>
