Brief

Kerala experts call for merger of 150 PSUs to curb duplication and costs

Analysts say merging boards and corporations could improve efficiency and save taxpayer money.

By Felo News Desk · Published Tue, 06 Oct 2026 20:56:15 GMT

Kerala’s network of 150 public enterprises, three development authorities and eight commissions has drawn criticism from experts who say the sheer number of bodies creates duplication and rising expenditure.

On Wednesday the state cabinet approved two cabinet‑rank appointments – the chair of the Administrative Reforms Commission and the state’s Special Representative in New Delhi – while also filling posts in academies and cultural institutions. The appointments sparked a dispute within the Congress‑led United Democratic Front, with UDF convener Adoor Prakash accusing party colleagues of bypassing consultation.

Centre for Development Studies director C Veeramani told New Indian Express that “having so many government and semi‑government bodies neither makes sense nor does good for the state.” He argued that merging boards, corporations and cooperative societies would reduce overlap, improve efficiency and lower taxpayer costs. Veeramani added that many bodies were created to accommodate political or bureaucratic interests.

Former chief secretary Jiji Thomson echoed the concern, noting the poor financial health of several PSUs and suggesting that consolidation could address the fiscal strain.

Key facts

• Kerala has 150 public enterprises, three development authorities and eight commissions. (newindianexpress.com)
• The state cabinet approved two cabinet‑rank appointments on Wednesday. (newindianexpress.com)
• UDF convener Adoor Prakash alleged a lack of consultation over the appointments. (newindianexpress.com)
• C Veeramani said merging bodies would reduce duplication and save taxpayers’ money. (newindianexpress.com)
• Former chief secretary Jiji Thomson warned of the weak financial position of several PSUs. (newindianexpress.com)

Sources

• [1] newindianexpress.com — originally reported as “Plethora of PSUs drain on Keralam; experts suggest rejig for efficiency”