New Delhi: 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/departments and is facilitated by the DPE.
"We have got the draft report and we are processing it," DPE Secretary O P Rawat told reporters on the sidelines of a PHD Chamber function here.
"Now, inter-ministerial consultations will take place and the proposal to revamp the MoU system is expected to go to the Cabinet in about a month's time," he added.
The move comes in the backdrop of problems faced by public sector enterprises (PSUs), mainly Maharatnas and Navratnas, in achieving targets fixed under (MoUs).
Under the present MoU system, equal weightage (50 percent each) is assigned to financial and non-financial parameters.
Currently, the annual target system does not factor in issues and fluctuations like prices of petroleum products and the difficulties power and coal sectors are facing.
Earlier, Rawat had said, CPSEs have made a case for more weightage to sector-specific parameters so that they could focus more on completing projects on time.
Coal India, which accounts for over 80 percent of the domestic production is battling with regulatory hurdles including delays in green nod to its various projects.
On appointment of independent directors on boards of CPSEs, Rawat said in the last three months, many PSUs have filled these posts on their boards.
"We have reviewed with all CPSEs and have asked them to send proposals quickly so that the appointment process of independent directors is expedited," he said.
At times, PSUs cannot move forward with the public offerings because of delay in appointment of independent directors on their boards.


Latest News  from Business News Desk