MoU with PSEs should focus on performance parameters: Panel

NEW DELHI: The government should alter the focus of its MoU system with Public Sector Enterprises by according a higher weightage to performance parameters such as research and development and contribution to defence, a Parliamentary Committee has said.
"The Memorandum of Understanding should be altered to shift focus on financial performance. MoU should accord higher weightage to performance parameters relating to R&D, contribution to defence, product development for difficult terrains like high altitude movement vehicles," a Department- Related Parliamentary Standing Committee on Industry has said.
The 33 member committee, headed by P C Alexander which examined three strategic PSEs - Hindustan Aeronautics Ltd, Bharat Earth Movers and Nuclear Power Corporation said, MOUs should also contain weightage for energy efficiency and resource efficiency as they are liable to reflect in the Balance Sheet of the Company under the Companies Act.
The committee felt that since the unit is operating in a strategic sector it is imperative that it has a sound policy for retention and upgradation of skills of its human resource.
"This is more than imperative for a unit like BEML, having regard to its strategic contribution to India''s defence and infrastructure sector. It is therefore felt that the weightage for HRD should also be higher," it said.
Referring to HAL, the committee said that HAL should resort to diversifying its market base into aviation sector and expand to new products and services instead of present dispensation of excessive dependence on the Indian Air Force.
In this context, the committee said that HAL should develop testing and servicing facilities, drawings and design consultants so as to ensure their presence in a larger arena in the market especially with better coordination with the Ministry of Civil Aviation, State governments, Ministry of Agriculture and Disaster Relief Agencies.
Expressing concern that BEML had not been able to get adequate work orders for its railway coach-manufacutring unit at Bangalore, the Committee recommended that the BEML should approach organisations like the Delhi Metro Corporation to obtain work orders and the issue should be taken up with the railway authorities at the highest level.
"BEML should resort to aggressive marketing and explore new areas beyond their traditional customers to expand their market base," it said adding that BEML should also explore possibilities of providing maintainence service for high cost machines.
Referring to NPCIL, the committee said, "higher weightage should be accorded in the MOU for safety parameters besides, developing fail safe technologies and excellent safety record and also the environment of high improbability of risk".
Ecological and environmentally sustainable operation is also a vital area of concern for nuclear power. Weightage to this should also be accorded appropriately, it added.