Karnataka - Bangalore   

SCOPE seeks reforms in appointment of company heads

Bangalore: The Standing Conference of Public Enterprises (SCOPE), the body representing the interests of public enterprises, has called for reforms to quicken the process of appointing top executives in Public Sector Undertakings (PSU). Addressing the media on the sidelines of a national workshop for prospective candidates for board-level positions in PSUs on Friday, SCOPE Director-General U.D. Choubey said nearly 20 PSUs are “headless” at present. Among the large PSUs that are without heads are the two oil majors — Indian Oil Corporation Ltd. and ONGC Ltd. Mr. Choubey, who was earlier Chairman and Managing Director, GAIL (India) Ltd., the public sector gas pipeline company, said SCOPE is “evolving a reform process” that would expedite the selection process for top positions in PSUs. At present, the process of selection of a chairman and managing director takes at least one year because the selection has to be vetted by multiple agencies, including the Chief Vigilance Commissioner, Prime Minister's Office after the Public Enterprises Selection Board (PESB) has shortlisted suitable candidates. “The time period can be reduced significantly if the PESB is given greater authority,” Mr. Choubey said. More than 300 posts of independent directors in PSUs remain vacant, Mr. Choubey said. Referring to the disinvestment process, Mr. Choubey said, “Although the Union Government has earned more than Rs. 90,000 crore through disinvestment, the corpus with it is only Rs. 2,000 crore.” This corpus was meant to train workers and meet other social objectives, he said. He suggested that disinvestment proceeds ought to be earmarked for the concerned PSU's expansion, or for expanding research and development activities in the organisation. The funds could also be used for social sector projects, he suggested.

On shares for workers

Pointing out that “the rank and file employees” in PSUs are not in a position to buy shares in their companies, he suggested that PSUs establish a separate fund that can be utilised to purchase workers' shares on their behalf. Asked if this is a feasible option, Mr. Choubey said: “If there is a will, an innovative method can be designed with the approval of the SEBI.”

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