PSUs told to cut down on number of foreign visits, seminars

NEW DELHI: As part of its austerity drive, the government has asked the central PSUs to curtail the number of foreign trips and overseas seminars and refrain from buying new vehicles.

"Economy measures...in respect to purchase of vehicles, foreign travels and creation of posts will also be applicable to Central Public Sector Enterprises ( CPSEs)," the Department of Public Enterprises ( DPE) said in a communication to state-owned units.

On limiting the number of foreign trips, it said, "This would be the responsibility of the Secretary of each ministry or department to ensure that foreign travel is restricted to most necessary and unavoidable official engagements".

Besides, the CEOs of the state-owned firms would be responsible for ensuring compliance of these measures outlined for fiscal 2011-12. The compliance report would be placed before the board of directors on a quarterly basis, the DPE said.

The CPSEs have also been asked to cut down their expenses on organising seminars or workshops.

"Utmost economy shall be observed in organising conferences/seminars/ workshops. A 10 per cent cut on budgetary allocations for seminars/conferences shall be effected," it said.

There would be a complete ban on holding meetings and conferences at five star hotels, while exhibitions and conferences abroad would be "strongly discouraged," it added.

The move is followed by instructions issued by the Department of Expenditure for enabling the government to meet its fiscal and revenue deficit targets in 2011-12.

In the Budget 2011-12, the government had set fiscal deficit target at 4.6 per cent of the country's Gross Domestic Product and the revenue deficit target at about 3 per cent.

Also, there would be a total ban on creation of Plan and Non-Plan posts, except for new organisations which would be set up during the course of the current year based on already approved schemes.