New Delhi: As the Public Sector Units are facing dearth of independent directors, the Centre is all set to appoint the representatives from private sector.

According to the Ministry of Heavy Industries and Public Enterprise, with infusion of directors from private sector, professionalism can be enhanced in board of directors. 

Heavy Industries and Public Enterprises Minister Prafull Patel said that the PSUs should take advantage from the professional prowess of the directors hailing from private sector.

One of the reasons behind delay in listing of stocks of many PSUs is delay in appointment of independent directors. According to SEBI, any organization which wants to float their shares should have half the number of independent directors in the board of directors. Due to this, government is restricted in making disinvestments in those PSUs which are not listed.

The government is also trying to implement the process of selecting successors for those holding higher positions by anticipating the exit process well within time. Presently in PSUs, it takes normally 8-10 months in selecting new successor in case the incumbent retires. Meanwhile, the post is being handled by any officiating director or any joint secretary level officer of the Ministry. Right now the government is doing policy framework for implementation of such process.

In the talks with Dainik Jagran, SCOPE’s Director General Dr UD Choubey has said, “In such a global competitive era, we cannot run our PSUs efficiently without the head of organization.”