AHMEDABAD: The recent directive to the central public sector undertakings (PSUs) and government entities, asking them to pay for functions celebrating the three years of the Modi government may have irked some, but getting cash-rich PSUs to pay for for the government events is not new to Gujarat.

The state has seen this happen for a long when Prime Minister Narendra Modi was chief minister.

In 2008, the Modi-led Gujarat government told the state’s 13 PSUs to dole out 30% of their profit before tax for corporate social responsibility (CSR) projects. The rule was withdrawn sometime in 2010 as shareholders of the PSUs opposed it. By that time, at least two state PSUs had already paid their share to the Gujarat Socio-Economic Development Society.

Gujarat PSUs were also directed to cough up money for the 182-metre statue of Sardar Vallabhbhai Patel, the Statue of Unity. Those who donated include Gujarat Industrial Development Corporation, Gujarat State Fertilizers & Chemicals Ltd, Gujarat Narmada Valley Fertilizers Company Ltd and Gujarat Mineral Development Corporation. There have also been instances of PSUs being told to develop and run model schools and adopt modern diagnostic centres in various parts of the state. “Even for the state government’s flagship event like Vibrant Gujarat Investors Summit , PSUs are made to contribute. Gujarat State Road Transport Corporation provides bus services at nominal rates or for free for government events,” said a source.

Even private corporate entities are made to pay for events organized by the state. The Gujarat Industries Navratri Festival Society (GINFS) comprises a dozen leading companies in the state and has been pooling money to partly fund the mega ‘Navratri Festival’ organized by the state tourism department. Gujarat continues to see PSUs shell out for events organized by the government or backed by it.

The four-day art and culture event “Vadfest”, held in Vadodara in 2015, saw was sponsored by blue-chip state PSUs in a big way.

