Press Esc to close
Friday 31 October 2014
News updated at 11:42 AM IST
Weather
Max: 28.4°C
Min : 18°C
In Bangalore
Partially cloudy

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
Security personnel patrol a street after a protest by the supporters of Jammu and Kashmir...

Security personnel patrol a street after a protest by the supporters of Jammu and Kashmir...

India A players Rohit Sharma and Manish Pandey during a practice match against Sri Lanka...

India A players Rohit Sharma and Manish Pandey during a practice match against Sri Lanka...

Indian Air Force officers arrive at the Gateway of India after swimming for a distance...

Indian Air Force officers arrive at the Gateway of India after swimming for a distance...

The Navy hovercraft carrying West Bengal Chief Minister Mamata Banerjee to Sagar Island...

The Navy hovercraft carrying West Bengal Chief Minister Mamata Banerjee to Sagar Island...

A Rajasthani herder with his cows in Gurgaon...

A Rajasthani herder with his cows in Gurgaon...

Devotees wait for the Sun to offer prayers, during Chhath Puja festival in Agra...

Devotees wait for the Sun to offer prayers, during Chhath Puja festival in Agra...

Sand artist Sudarsan Pattnaik creates a sand sculpture on Black Money with a message...

Sand artist Sudarsan Pattnaik creates a sand sculpture on Black Money with a message...

BJP workers arrange the cut-outs of party symbol (lotus) to decorate the boats at the Marine...

BJP workers arrange the cut-outs of party symbol (lotus) to decorate the boats at the Marine...

A police man investigates the tunnel dug up by the robbers in Gohana bank heist, in Sonipat...

A police man investigates the tunnel dug up by the robbers in Gohana bank heist, in Sonipat...

Bollywood megastar Amitabh Bachchan sweeps in a stree during a cleanliness drive as a part...

Bollywood megastar Amitabh Bachchan sweeps in a stree during a cleanliness drive as a part...

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