No hurdles in extension of PSU board member term

Filing complaints against board members of public sector companies when they are due for an extension is not going to sway the government any more.

The government has decided not to stall such extensions just on the ground that vigilance clearances are pending.

The Department of Personnel and Training (DoPT) on Thursday announced the streamlining of policy for extending the tenure of board members.  According to the guidelines, departments can go ahead with extending tenures even if the Central Vigilance Commission (CVC) clearance has been delayed beyond the prescribed timelines, merely on account of procedural reasons, and where there is no denial of vigilance clearance. 

“This is imperative as it has been frequently observed that there is a spate of allegations and complaints against board-level officials whose cases become due for extension of tenure,” it said.

According to rules, if a board-level appointee is due for extension, their services cannot be terminated on completion of initial term without the consent of Appointments Committee of Cabinet.