The Department of Public Enterprises may soon send to the Cabinet for consideration, a proposal on new norms aimed at providing greater operational flexibility to the PSUs in achieving annual targets.
A Working Group on Memorandum of Understandings (MoU) norms for CPSEs, headed by P G Mankad, was set up by the department in May 2012 to examine current system of setting targets and suggest measures to improve the MoU system. The MoUs are signed between the CPSEs and their administrative ministries and is facilitated by the DPE.
The move comes in the backdrop of problems faced by public sector enterprises (PSUs), mainly Maharatnas and Navratnas, in achieving targets fixed under(MoUs).
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