Cabinet to consider greater autonomy for PSUs
The Department of Public Enterprises plans to approach the Cabinet in April 2006 with proposals to grant greater functional autonomy to public enterprises.
By PTI |
NEW DELHI: After extensive consultations with all stakeholders, the Department of Public Enterprises plans to approach the Cabinet in April 2006 with proposals to grant greater functional autonomy to public enterprises.
"The cabinet note on granting greater functional autonomy to PSEs on the basis of proposals of Ad-Hoc Group of Experts on Empowerment of Central Public Sector Enterprises is being finalised. It will be placed before the cabinet next month," sources said.
While the group headed by Arjun Sengupta, now a Rajya Sabha member, had made some radical suggestions on granting more functional autonomy to PSEs, not all are expected to be accepted in totality.
The Government had earlier substantially enhanced the financial powers of the PSUs on the basis of the recommendations of the group in the middle of last year.
"All stakeholders have expressed different views on the various aspects of autonomy. The DPE has its own views. All these will be communicated to the cabinet for decision," added the sources.
While the PSEs may get greater autonomy in their relationship with the administrative ministries and some reprieve on vigilance matters, institutions like Comptroller and Auditor General of India have justified their role vis-a-vis the PSEs.
The Ad-Hoc group had recommended that test and supplemenary audit of state-owned companies should be done in exceptional circumstances.
Moreover it serves altogether different purpose than the audit under the Companies Act, the CAG has maintained.
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