The Minister for Heavy Industries & Public Enterprises Shri Praful Patel today met with the CMDs and representatives of Maharatna and Navratna CPSEs including NTPC, ONGC, IOC, SAIL, CIL, BHEL, GAIL, HAL, PFC etc. The focus of the meeting was to review the MOU system of Public Sector Enterprises to make them more effective.
The Minister was briefed by the Maharatna & Navratna CPSE representatives on a number of issues which would help the CPSEs to perform better and give them more operational flexibility.
Shri Praful Patel felt that there was need to review the existing MOU system so that it factors in issues like fluctuation in prices, availability of raw material, clearances, and other parameters which may require adjustment on real time basis.
The Minister assured the CPSE Chiefs that Ministry will look into the issues raised by the CPSEs and will frame fresh guidelines on MOUs to help them grow and provide them with operational flexibility. He has also said that an appeal or review mechanism will be introduced wherein if during the course of the year business environments or other conditions change, the company is in a position to make an appeal to revise MOUs keeping the situation and external factors in mind. This he said would apply only to the Maharatna & Navratna CPSEs.
The Minister has also said that this would be done in a time- bound manner and the process will be completed within this fiscal year.