From correspondents in Gujarat, India, 09:33 PM IST
The ailing Gujarat State Financial Corporation (GSFC) Wednesday announced a voluntary retirement scheme for its 400-odd employees to 'reduce the work force and curtail expenses'.
The scheme, effective from May 12, will be in operation for a period of three months, the company said in a release. The scheme was notified on the Bombay Stock Exchange Wednesday.
Official sources told IANS that the state government's plan was to achieve a staff strength of 50 through downsizing of the organisation.
A state government appointed task force, while suggesting a restructuring of the corporation, has called for steps, including downsizing of the organisation, to reduce the overall administrative expenditure.
GSFC fell into bad times towards the end of 2000 following large scale default on loans.
In August 2001, the company discontinued its main activity of lending and disbursement and concentrated on recovery of past dues.
The state government had made efforts for a merger of GSFC with the Gujarat Industrial and Investment Corporation (GIIC). The plan was dropped due to legal hurdles.
The company had announced a voluntary retirement scheme in 2003 too.
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GSFC's falling into bad times is not atypical of several state financial corporations. The other SFCs. will do well to follow the example of GSFC. In this computer age, the workforce in many of our departments and govt. undertakings recruited rather arbitrarily will be at least 10 times redundant.
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