Press Esc to close
Friday 24 October 2014
News updated at 11:44 PM IST
Weather
Max: 0°C
Min : 0°C
In Bangalore
Sunny day

GoM gives nod for three-year fixed tenure for PSU heads

New Delhi, May 16, 2013, (PTI) :
Finance Minister P Chidambaram. File PTI Image

In a move to give stable tenure to PSU heads, a Group of Ministers (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.

"The GoM, headed by Finance Minister P Chidambaram, has approved a fixed tenure of 3 years for Chairman and Managing Directors of PSU," a top official said.
The recommendation of the GoM will now go the Cabinet for approval, he added.

This means that someone like Sudhir Vasudeva who was appointed Chairman and Managing Director of Oil and Natural Gas Corp (ONGC) in October 2011 at the age of 58 years, would continue at head of India's most profit-making firm well past his retirement age in February 2014.

The proposal to fix tenure of CMDs is a part of the recommendations made by a government-panel headed by former SAIL Chairman S K Roongta.


Besides, the government has been asking CPSEs to make efforts to achieve their annual targets to contribute to the country's economic growth.

On May 13, the Prime Minister's Office (PMO) has asked 17 top PSUs, including ONGC, GAIL and NTPC, to undertake targeted Rs 1.42 crore capex for 2013-14 or else pay higher dividends to help boost sagging economy.

Pulok Chatterji, Principal Secretary to Prime Minister, took a review meeting of capital investment in projects by PSUs and decided to add seven more, including Nuclear Power Corp, to the list of those monitored for project implementation and spending.

The PMO has been monitoring capex and investment plans of 17 major CPSEs since last fiscal to enhance investment in the economy, utilising their substantial cash surpluses.

Also, it asked the attending heads of cash-rich CPSEs and secretaries concerned to work towards fulfilling and exceeding the targets as this was "extremely important for the economy".

As on March 31, 2012, there were 260 CPSUs (excluding seven insurance companies) with a total investment of over Rs 7 lakh crore. These companies employ 13.98 lakh people.

Go to Top

Photo Gallery
Hindu priest performs evening prayers called 'Aarti' on the banks of the river Yamuna...

Hindu priest performs evening prayers called 'Aarti' on the banks of the river Yamuna...

Dakshineswar Temple decorated with lights for the Kali Puja and Diwali at North 24 Pargana...

Dakshineswar Temple decorated with lights for the Kali Puja and Diwali at North 24 Pargana...

Firecrackers light up the sky as people celebrate Diwali festival in Mumbai...

Firecrackers light up the sky as people celebrate Diwali festival in Mumbai...

School students lighting earhen lamps at Tulsi Ghat in Varanasi...

School students lighting earhen lamps at Tulsi Ghat in Varanasi...

A view of decorated Madan Mohan Malviya Stadium with oil lamps during Deepwali festival...

A view of decorated Madan Mohan Malviya Stadium with oil lamps during Deepwali festival...

Illuminated Golden Temple on the eve of Diwali in Amritsar...

Illuminated Golden Temple on the eve of Diwali in Amritsar...

Children with special needs light firecrackers as they celebrate Diwali...

Children with special needs light firecrackers as they celebrate Diwali...

Border Security Force (BSF) soldiers enjoy Diwali celebrations on the eve of Diwali...

Border Security Force (BSF) soldiers enjoy Diwali celebrations on the eve of Diwali...

Hindu priests light oil lamps in a formation of the 'Swastika', a Hindu symbol of peace...

Hindu priests light oil lamps in a formation of the 'Swastika', a Hindu symbol of peace...

A Border Security Force (BSF) soldier lights sparklers on the eve of Diwali...

A Border Security Force (BSF) soldier lights sparklers on the eve of Diwali...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523