In a bid to accelerate the process of revival of sick Public Sector Undertakings (PSUs) the Centre, on Thursday, decided to give cash incentive of up to Rs 10 lakh and extend the date of retirement of Chief Executive or Functional Director of such sick units  contributing to the turnaround, to 65 years.

The decision was taken by the Union Cabinet at its meeting chaired by the Prime Minister, Union Minister for Information & Broadcasting P R Dasmunsi told reporters here.

The Cabinet decision to give more time to such Chief Executive, who has worked out the revival package and implemented it with success, has been done on the basis of recommendations of the Board for Reconstruction of Public Enterprises (BRPSE).

“The extension will be subject to the review of performance to be conducted by the Secretary of Administrative Ministry under which PSU is functioning,” he said.

Perks & allowances
Besides pay, allowances and perks attached to the post, a lump sum incentive up to Rs 10 lakh out of the profits of CPSE, may be considered provided the company has achieved all projected targets of the revival plan.
The Administrative Ministry concerned will take a decision in this matter on the basis of broad guidelines to be formulated by the Department of Public Enterprises (DPE) in consultation with Department of Expenditure and Department of Personnel and Training.

Relaxation in the process for selection, appointment and grant of extension would provide continuity at the level of Chief Executives or Functional Directors, which is essential for the implementation of revival plan in respect of sick PSUs, Mr Dasmunshi said.

The BRPSE has so far recommended revival of more than 40 state-owned companies and it wanted that the Chief Executives or directors who have formulated the package must be given enough time to implement it and put the sick company on a firm path of revival, he added. More than 20 cases recommended by BRPSE have been cleared by the Cabinet and are under implementation.