Expert group suggests another layer of control over PSUs

NEW DELHI: Though the government appointed group of experts is in favour of enhanced financial powers to the boards of PSUs, it has suggested another layer of supervision to guide the affairs of state-owned companies.

The ad hoc Group of Experts on Empowerment of Central Public Sector Enterprises has recommended to the government to ensure harmonious relations between the government, board of directors and the management of six overarching sectoral bodies.

This recommendation of the group of experts is in complete contrast to the deliberations on the empowerment of PSUs at Board for Reconstruction of Public Sector Enterprises.

The BRPSE is discussing of doing away with the system of administrative ministries and putting in place a Chinese model for control of PSUs where an independent body accountable to the Parliament overlooks the affairs of government-owned companies.

The supervisory bodies should have ten members with Finance Minister, Minister in charge of Department of Public Enterprises and five experts of the relevant sector who should be nominated for a fixed term by the Prime Minister.

Apart from that the supervisory bodies should have Minister and Secretary of Administrative Ministry of concerned central PSU and Chief Executive of the company.

The Group has suggested that the six supervisory bodies should deal with sectors like energy, manufacturing, infrastructure, trading and services, food and agriculture and social sector.