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Sunday, June 13th, 2021

Minister of HI & PE Assures Qualitative Improvement in the Functioning of PSEs

INVC,, Delhi,, Standing Conference of Public Enterprises (SCOPE) in collaboration with Department of Public Enterprises (DPE) organized an Interaction of Mr. Praful Patel, Minister of Heavy Industries & Public Enterprises with Chief Executives of Maharatna, Navratna and Miniratna CPSEs here today.  The Minister also released Public Enterprises Survey 2009-10. Dr Nitish Sengupta, Chairman, BRPSE and Mr. Bhaskar Chatterjee, IAS, Secretary, DPE also addressed the participants. Mr Arup Roy Choudhury, Chairman, SCOPE and CMD, NTPC Ltd  and Dr U.D. Choubey, DG, SCOPE presented issues and reforms which required attention of the government.    It was attended by a large number of CMDs, Directors and Senior Executives of PSEs. Mr. Praful Patel, Minister of HI&PE said his Ministry will look into the concerns of PSEs and would try to bring qualitative change in the functioning of PSEs within its framework.  He said the government as the principal stakeholder needs to change its mindset in the way it engages and looks at the public sector to make it accountable to the Parliament and to the stakeholders. Responding to the reform measures suggested by Chairman, SCOPE Mr. Arup Roy Choudhury and Director General, SCOPE, Dr U.D. Choubey, the Minister assured that the issues which are a drain on the growth of the public sector, which are coming as obstacle will be resolved one by one. On the issue of delay in selection of CMDs and Directors in PSEs, raised by SCOPE, Hon’ble Minister said government will also  ensure simplification of procedure and  chalk out a succession plan so that there is no vacancy at top level. He asked DPE to put up a proposal in this regard. Hon’ble Minister also urged the PSEs to have fierce desire to grow to take on global competition.  He said private sector has drawn many of the best brains and talents from the public sector.  In fact, the backbone of lot of core industries in private sector have been created through the talented pool which public sector has created.  He also advised PSEs to take up ESOP more aggressively. Mr. Bhaskar Chatterjee, IAS, Secretary, DPE said that public sector is at cross roads as it is operating in a competitive era and there is complete change in outlook. The reform agenda will be taken forward to make PSEs even more robust and progressive. Mr. Arup Roy Choudhury, Chairman, SCOPE & CMD, NTPC Ltd said there is need to develop a system for performance appraisal of Independent Directors for which a brief from the CMD of the company should be taken into consideration by the Secretary, DPE. He also stressed the need to have sucession planning in PSEs so that  DPE may develop a pool of competent executives.  On ownership issues of PSEs, he said PSEs are being treated as any other government department and urged for  a level playing field for public sector vis-à-vis private sector. Dr U.D. Choubey, Director General, SCOPE emphasized the need for enhanced functional autonomy to PSEs.  He said ownership should not transgress into Board Level Management and PSEs must take decision within empowerment.  He drew the attention to the long-drawn process for selection of CEOs/Directors of PSEs for which he proposed a succession plan so that the selection process could be completed within a period of three months. At present about 70 posts of CMDs & whole time Directors and 300 posts of Independent Directors are lying vacant. DG, SCOPE said for the qualitative contribution of independent directors, he should be a domain expert and there should be a Code of Conduct to facilitate evaluation of  their performance. After the inaugural session, some of the CMDs of Maharatna, and Navratna/Miniratna  CPSEs made presentation before the Hon’ble Minister which included NTPC, BHEL, GAIL,  RINL, NLC, and CWC among others. This is for the first time that a Minister devoted his full day to interact with the chief executives of Maharatna, Navratna and Miniratna CPSEs on the issue of bringing reforms in Public Sector Enterprises.

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