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The Cabinet is expected to take up the proposed reforms for State-owned companies, including a three-year fixed tenure for CPSE heads, next month.
The Department of Public Enterprises has held consultations with the ministries concerned on reform measures that have been accepted by the Group of Ministers (GoM) headed by Finance Minister P. Chidambaram.
“We have already processed the Roongta Committee recommendations (on PSUs reforms) and they should be coming to the Cabinet in a short time,” Minister of Heavy Industries and Public Enterprises Praful Patel told presspersons on the sidelines of a CII function here.
“I think in September we should see the Cabinet approving most of the recommendations,” he added.
The suggestions are aimed at strengthening the performance, transparency and efficiency of the Central Public Sector Enterprises (CPSEs).
The reforms, recommended by a Government panel chaired by former SAIL Chairman S. K. Roongta, include a three-year fixed tenure for PSUs’ heads and swift action against PSU officials indulging in any malafide action or wrong doing.
At present, all directors as well as Chairmen of CPSEs retire at the age of 60. This means that some would have only a limited time on the board to shape policies.
As on March 31, 2012, there were 260 CPSEs, excluding seven insurance companies. At that time, these companies employed about 13.98 lakh people.
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