CEOs of sick PSUs to get more time for revival

New Delhi: To put the revival of sick PSU companies on a firm ground, the government has decided to give cash incentive of up to Rs 10 lakh and extend the date of retirement of chief executive or a functional director of a firm, who have contributed to the turnaround, to 65 years.

The decision of the Cabinet to give more time to the chief executive, who has worked out the revival package and implemented it with success, has been done on the basis of recommendations of Board for Reconstruction of Public Enterprises (BRPSE).

BRPSE has so far recommended revival of more than 40 state-owned companies and it wanted that the Chief Executives or directors who have formulated the package must be given enough time to implement it and put the sick company on a firm path of revival. More than 20 cases recommended by BRPSE has been cleared by the Cabinet and are under implementation.

"The extension will be subject to the review of performance to be conducted by the secretary of the Administrative Ministry under which the PSU is functioning," Minister of Information and Broadcasting Priyaranjan Dasmunsi said after the Cabinet meeting.

Besides pay, allowances and perks attached to the post, a lump sum incentive up to Rs 10 lakh out of the profits of CPSE, may be considered provided the company has achieved all projected targets of the revival plan.

In case fresh appointment of the Chief Executive or Functional Director is proposed and no application is received, the age relaxation of up to 62 years as the cut off age for applying with minimum tenure of three years could be considered.

In such cases serving or retired CPSE executives, government servants and private sector executives also should be considered.

This decision too will be taken by the administrative ministry as per the guidelines formulated by the Department of Public Enterprises in consultation with Department of Expenditure and Department of Personnel and Training.