Meet on PSU autonomy next week

NEW DELHI: The first meeting of the high-powered committee to review Navratna and Miniratna scheme for public sector companies will be held next week.

The committee, which was formed to look into the issue of devolving more powers to successful and profit-making companies, will go into the entire Navratna and Miniratna
scheme that has been functioning since 1997-98.

The Ministry of Heavy Industries and Public Enterprises has already forwarded its recommendations on enhancing financial and administrative autonomy to be granted to the
public sector companies.

The Ministry has reportedly recommended that powers of joint ventures and mergers and acquisitions that have been given to the boards of Navratna and mini-ratna PSUs be doubled from 15 per cent of their net worth to 30 per cent of their net worth.

The Ministry has also prepared a plan for granting more powers to other profit making PSUs, which may include powers to their board to independently go ahead with mergers and acquisitions.

The plan has been sent to the Cabinet Secretariat. The Committee of Secretaries has reportedly agreed with all the suggestions of the Heavy Industry and Public Enterprises
Ministry and now an expert committee headed by Arjun Sengupta will vet the plan before it is taken to the Cabinet for approval.

The committee headed by Arjun Sengupta is expected to go into the issue of enhanced powers to PSUs with fine tooth comb.

"It will not be a rubber stamp commission. We will go into the issue of enhanced autonomy in detail," Sengupta told PTI without divulging more details.