Ministries told to draft revamp plans for PSUs

NEW DELHI: With a view to make public sector units more efficient, the Cabinet Committee on Economic Affairs on Wednesday asked the ministry of heavy industries to come up with papers on specific proposals in 10 areas, including corporate governance, purchase preferences, R&D and quality.Briefing reporters after the CCEA meeting, finance minister P Chidambaram said the proposal was aimed at undertaking financial and physical review of PSUs.

According to the revised clause on liquidated damages approved by the CCEA, in case of a delay in completion of a contract, liquidated damages (LDs) will be levied at the rate of 0.5% of the contract price per week of delay, subject to a maximum of 10% of contract price.The contractor will also be liable to pay for failure to achieve anticipated savings in costs or expenses