Financial advisors to be nominated in board of directors of state PSUs

It may be mentioned that the state government had been contemplating of nominating financial advisors in such bodies for quite some time. Finally, the decision in this regard was taken at the beginning of this month. 

According to the sources in the state finance department, following a high-level meeting headed by the state finance minister Amit Mitra “it has been decided to nominate financial advisors of the concerned administrative departments as the official representatives of Finance Department in the Board of Directors or Board of Commissioners or Governing Body of state run PSUs, statutory corporations and state aided Universities”.

It may be recalled that there are already representatives of Finance Department in the board or governing bodies of many of such state-run organisations and institutions. But, all the previous orders issued by the Finance Department nominating any officer have been cancelled. But there are provisions of sending a separate proposal for fresh concurrence of Finance Department if any exceptional situation arises.

Chief Minister Mamata Banerjee had been repeatedly stating in almost every administrative review meetings to ensure proper and complete utilisation of fund that is being allotted for development in different sectors. Moreover, senior state government officials had felt that the “complete and proper” utilisation of allotted fund was essential when the state was passing through a debt trap situation. But development work has to be carried out despite of being reduction of fund by the Centre on various projects.

According to an official of the finance department, nomination of a financial advisor would not only help in proper and complete utilisation of the fund allotted for a particular project, but it would be helpful for the institutions and the state run PSUs in getting a better output.

The nomination of financial officers in the board or directors of a state PSU would help the bodies to get a better turn out.