Kerala govt’s White Paper on fiscal health seeks revamp of loss-making public sector enterprises

Key points

• A revamp of Kerala’s loss-making public sector enterprises (PSE), with a suggestion that ‘non-strategic’ PSEs may be considered for “disinvestment, privatisation, or closure in cases where they are potentially non-viable,” forms part of the key recommendations in the UDF government’s White Paper on Kerala’s fiscal health.
• The document, ‘Kerala’s Fiscal Health: A Status Report’ tabled in the State Legislative Assembly on Thursday (June 4, 2026), also recommends a merger of the Kerala State Beverages Corporation (Bevco) and the Kerala Civil Supplies Corporation (Supplyco) into a single corporation “with separate divisions for liquor distribution and civil supplies/provisions.” The White Paper noted that it is imperative that the Kerala State Electricity Board (KSEB), the Kerala State Transport Corporation (KSRTC), and the Kerala Water Authority (KWA) are reformed in a manner that they cease to be a drain on the exchequer.
• The committee headed by former Union Cabinet Secretary K.M.
• Chandrasekhar observed that...