Millennium Post

DPE finalises norms for PSU target fixing

The Department of Public Enterprises has finalised new guidelines for providing greater operational flexibility to PSUs in achieving their annual targets and the same would be sent to the High-Power Committee (HPC) for its consideration this week. A working group on MoU norms for CPSEs, headed by P G Mankad, was set up by the Department of Public Enterprises (DPE) in May 2012 to examine the current system of setting targets and suggest measures to improve the MoU system.

Recently, the Group had submitted its draft report. 'We have finalised it (report). This week, the MoU report will be submitted to the HPC which is headed by Cabinet secretary Ajit Kumar Seth,'secretary in DPE O P Rawat said. The MoUs are signed between the Central Public Sector Enterprises (CPSEs) and their administrative ministries/departments and is facilitated by DPE.

The move comes in the backdrop of problems faced by PSUs, mainly Maharatnas and Navratnas, in achieving targets fixed under MoUs.
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