GoM approves extension for senior officers in CPSEs by 2 years

NEW DELHI: Seeking to fill the senior level vacancies in CPSEs, the Group of Ministers (GoM) today gave green signal to extend service of officers at the level of Deputy General Manager (DGM) and above by two years.

The Group of Ministers on public sector reforms, headed by Finance Minister P Chidambaram, held its second meeting to look into recommendations made by a government-panel headed by former SAIL Chairman S K Roongta.

"The GoM has accepted the recommendation to extend service after retirement up to a maximum of two years for CPSE executives at the level of DGM and above (but below the board level) with excellent service records for filling up immediate gaps in organisation," an official said, adding the proposal will be sent to the Cabinet for its consideration.

This is aimed at filling up gaps in the company. Such an extension may be limited to a maximum of three per cent to total positions available in the respective grades, he added.

Besides, the GoM considered a recommendation to provide greater autonomy to CPSE boards for selection of joint venture partners and acquisitions of companies.

It also considered that in the interim, the boards of CPSEs may be required to obtain an 'in-principle' clearance in advance from the administrative ministry for entering 'competitive negotiation' in place of 'competitive bidding.'

The GoM had two extensive rounds of deliberations and has reviewed lots of recommendations and has accepted some suggestions, Minister of Heavy Industries and Public Enterprises Praful Patel told reporters after the meeting here.

"Based on these recommendations and the deliberations of the GoM, we will move (proposals) to the Cabinet and come out with a fresh set of guidelines which will help CPSEs function in a much more competitive and transparent environment," he said.

Besides, he said, one of the major recommendations was to have a a strong set of independent directors on the board of PSUs. "The age limit for independent directors has been proposed to be relaxed from 45 years to 70 years, instead of 65 years."

Also, Patel said, the GoM has approved a minimum tenure of three years for chairmen of state-owned firms, irrespective of their superannuation age.

Currently, all directors as well as chairman of public sector enterprises compulsorily retire on reaching the superannuation age of 60 years. This meant that some would have only a very limited time on the board to shape policies.