Govt to bring new guidelines for greater flexibility for PSUs
19 April 2012 5:49 PM GMT
The government on Wednesday said it will soon come out with fresh guidelines for public sector units (PSUs) that have Maharatna and Navratna status to enable them greater operational flexibility in achieving annual targets.
Minister for Heavy Industries and Public Enterprises Praful Patel met the heads of Maharatna and few Navratna companies who made presentation to the minister on the issues facing them while meeting annual targets set in the Memorandum of Understanding (MoU) with the government.
‘The MoUs are fixed, but at times they are unrealistic. Targets cannot be met.... Maharatna and Navratna companies need more operational flexibility, so guidelines will have to be brought in place,’ Patel said.
‘Ultimately if these companies have to become global companies, they will have to require more operational flexibility which we are very inclined to look at,’ he added.
At present, there are 5 Maharatna companies - ONGC, NTPC, IOC, SAIL and CIL and 16 Navratna companies, including BHEL and GAIL. On when the new norms would be in place, Patel said, ‘We have to examine all the proposals made by the companies and we will do it in this financial year.’
‘The MoUs are fixed and there is no appeal or review mechanism in place at the moment. In case of Navratnas and Maharatnas, we propose to have a review and appeal mechanism for the annual targets fixed by them,’ Patel added.
Minister for Heavy Industries and Public Enterprises Praful Patel met the heads of Maharatna and few Navratna companies who made presentation to the minister on the issues facing them while meeting annual targets set in the Memorandum of Understanding (MoU) with the government.
‘The MoUs are fixed, but at times they are unrealistic. Targets cannot be met.... Maharatna and Navratna companies need more operational flexibility, so guidelines will have to be brought in place,’ Patel said.
‘Ultimately if these companies have to become global companies, they will have to require more operational flexibility which we are very inclined to look at,’ he added.
At present, there are 5 Maharatna companies - ONGC, NTPC, IOC, SAIL and CIL and 16 Navratna companies, including BHEL and GAIL. On when the new norms would be in place, Patel said, ‘We have to examine all the proposals made by the companies and we will do it in this financial year.’
‘The MoUs are fixed and there is no appeal or review mechanism in place at the moment. In case of Navratnas and Maharatnas, we propose to have a review and appeal mechanism for the annual targets fixed by them,’ Patel added.
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