New Delhi, August 27;The Cabinet is expected to take up the proposed reforms for state-owned companies, including a three-year fixed tenure for Central Public Sector Enterprise (CPSE) heads, next month.
The Department of Public Enterprises has held consultations with ministries concerned on reforms measures that have been accepted by the Group of Ministers (GoM), headed by Finance Minister P. Chidambaram.
“We have already processed the Roongta Committee recommendations (on PSUs reforms) and they should be coming to the Cabinet in a short time,” Minister of Heavy Industries and Public Enterprises Praful Patel told reporters on the sidelines of a CII function in New Delhi.
“I think in September, we should see the Cabinet approving most of the recommendations,” he added.
The suggestions are aimed at strengthening performance, transparency and efficiency of the CPSEs.
The reforms, recommended by a government-panel chaired by former SAIL Chairman S. K. Roongta, include a three-year fixed tenure for PSU heads and swift action against PSU officials indulging in any mala fide actions or wrong doings.
At present, all directors as well as Chairmen of CPSEs retire at the age of 60. This meant that some would have only a very limited time on the board to shape policies.
As on March 31, 2012, there were 260 CPSEs, excluding seven insurance companies. At that time, these companies employed about 13.98 lakh people.