Description
Summary:This note aims to document Andhra Pradesh's experience in reforming its State Level Public Enterprises (SLPE's) since the last seven years and the main issues going forward. The note is organized in seven sections. Section one discusses the backdrop of state-wide reforms, in particular public enterprise reforms, undertaken by the state of Andhra Pradesh in late nineties. This section lays the rationale and importance of the reform program in the light of deteriorating performance of PEs in the state. Section two discusses the approach taken by the government, the key element of which was 'carrying all stakeholders along'. The next section discusses the design of the program: a phased approach with all the essential building blocks like the legal and institutional structures, a social safety net program, a good communications strategy and factoring in environmental issues through audits upfront. Section four and five discuss the implementation arrangements and the definitions of reforms respectively. Section six documents the achievements and progress of the program under phase one and two in the last seven years. Section seven discusses the implementation issues; challenges faced during various stages of the program and the government's response to the same. The last section concludes with a review of key challenges going forward.