The project involved review and assessment of the broad outline of the evolving Government of Kerala strategy for public enterprises reform, including the enabling environment for closures and privatization and with an emphasis on sequencing and transparency issues, and useful measures which can be implemented in the next one to two years. The tasks involved reviewing the policy focus of the state government for disinvestments, suggesting key actions to be initiated for a sustained process of reform, suggesting a policy and action plan for VRS/ OTS and suggesting a long term strategy for disinvestments/ closure for PSEs. It also involved evaluation of the present legislation regarding VRS/OTS/Guarantees and related issues.

•  Reviewed and assessed the broad outline of the evolving Government of Kerala strategy for public enterprises reform, including the enabling environment for closures and privatization;

•  Identified gaps/deficiencies in the current state strategy with an emphasis on sequencing and transparency issues, and useful measures which can be implemented in the next one to two years by Government of Kerala: (a) to improve public enterprises performance and reduce financial losses; (b) to enhance the enabling environment for privatization and/or leasing of potential PSU privatization candidates; and (c) achieve complete closures;

•  Assessed and suggested ways to improve the capacity of the implementing agency (IES) being tasked with responsibility for overseeing closures, leasing and privatization;

•  Reviewed the practicality of recommendations of a recent report of the Commonwealth Secretariat. The report had assessed a pilot projects of three state-owned public enterprises managed under best practice conditions for an extended period;

•  Reviewed and commented on recommendations of chapter on Kerala public enterprises and their competitiveness prepared by Professor K.K. Subrahmanian for ADB in 2000;