GoM on PSU reforms to meet on May 22
New Delhi: The panel of ministers on reforms in public sector enterprises will have its second meeting on May 22, sources said.
The Group of Ministers (GoM) in its first meeting on April 23 is believed to have agreed on a slew of reform proposals for the public sector units (PSUs).
Sources said the panel discussed the need for having a clear distinction between procedural lapses and deliberate misuse of powers by key management personnel before seeking the intervention of Central Vigilance Commission (CVC) or the Central Bureau of Investigation (CBI).
The GoM has also cleared the proposal of a fixed tenure of three years for chairmen of state-owned companies, irrespective of their superannuation age, sources added.
The panel also agreed on having a system where a successor is decided upon six months before the retirement of the incumbent PSU head, sources said.
The ministerial group is looking into recommendations made by the government-panel headed by former SAIL Chairman S K Roongta.
Reforms are aimed at strengthening the performance, transparency and efficiency of public sector enterprises.
In the first meeting, the proposal regarding a fixed term for heads of public sector companies had been given the approval.
At present, all directors as well as Chairmen of Central Public Sector Enterprises (CPSEs) retire on reaching the superannuation age of 60 years. This meant that some would have only a very limited time on the board to shape policies.
All GoM recommendations would be submitted to the Cabinet for final approval.
As on March 31, 2012, there were 260 CPSEs, excluding seven insurance companies. At that time, these companies employed about 13.98 lakh people.