DPE to send PSUs reforms recommendations to Cabinet this month

NEW DELHI: The Department of Public Enterprises (DPE) will move a Cabinet note on reforms for state-owned companies, including three-year fixed tenure for CPSEs heads, by end of this month.

The department has held consultations with the ministries concerned on reforms measures that have been accepted by the Group of Ministers, headed by Finance Minister P Chidambaram.

"The DPE has completed inter-ministerial consultations on the recommendations (approved by the GoM) and will send these recommendations to the Cabinet by end of this month," DPE Secretary O P Rawat told PTI.

The suggestions are aimed at strengthening performance, transparency and efficiency of the Central Public Sector Enterprises, he added.

The reforms, recommended by a government-panel chaired by former SAIL Chairman S K Roongta, include three-year fixed tenure for PSUs' heads and swift action against PSUs officials indulging in malafide actions or wrong doings.

At present, all directors as well as Chairmen of CPSEs retire at the age of 60. This meant that some would have only a very limited time on the board to shape policies.

As on March 31, 2012, there were 260 CPSEs, excluding seven insurance companies. At that time, these companies employed about 13.98 lakh people.