The Government continued the initiative to empower profit making Central Public Sector Enterprises (CPSEs) during the year 2011-12. Coal India Limited was granted ‘Maharatna’ status and Neyveli Lignite Corporation was granted ‘Navratna’ status during the year 2011-12 and presently there are 5 Maharatna CPSEs and 16 Navratna CPSEs. The grant of Maharatna/Navratna status will enable the Boards of these CPSEs to exercise delegated powers under the Maharatna/Navratna scheme.
The Government has approved the ‘Policy for acquisition of Raw Material Assets Abroad by CPSEs’ during the year 2011-12. This policy provides for an integrated mechanism for facilitating acquisition of raw material assets abroad by CPSEs and enhanced powers to ‘Maharatna’ and ‘Navratna’ CPSEs for undertaking such acquisition.
Setting up of a National Corporate Social Responsibility Hub
Based on the “Guidelines on Corporate Social Responsibility for Central Public Sector Enterprises” issued by the Department of Public Enterprises, in April, 2010, a National Corporate Social Responsibility Hubhas been set up at Mumbai. The Hub undertakes/facilitates activities, such as, nationwide compilation, documentation and creation of database on the subject matter of Corporate Social Responsibility; Advocacy and Research; Preparation of panels of Implementing Organizations; Promotional activities, including production of short films, printing of brochures, pamphlets, promotional materials, etc., setting up a National Data Centre; Organizing Conferences, Seminars, Workshops (both national and international) and also acts as a Think Tank. The Hub has also coordinated training in CSR for CPSE’s executives in association with seven identified institutes all over India.
Memorandum of Understanding 2012-13
MoU Process provides a mechanism to reward good performance incentives to stimulate improved performances of CPSEs.
In MoU, realistic, growth oriented and challenging annual targets which are consistent with annual plan, corporate plan and budget of CPSEs etc., are fixed.
CSR, R&D, Corporate Governance, Human Resource Management and Sustainable Development as parameters in MoU have been given 5% weightage each. Adoption of innovative practices which optimize cost, enhance efficiency, improve productivity etc., was added as a new parameter in MoU. The Projected Investment (CAPEX) for financial year 2012-2013, as committed by 17 CPSEs were reflected in MoU. In addition, some new parameters such as Issue of Bonus Shares, Reservation for SC,ST and OBC in appointment, Posting of deputationists, Implementation of 2007 Pay Revision, Switching over from CDA to IDA pattern of pay scales, Submission of Report on Compliance of DPE Guidelines and Listing of CPSEs were introduced in MoU. The MoU of CPSEs is expected to be integrated and aligned with Results Framework Document (RFD) of the administrative Ministry/ Department.
Board for Reconstruction of Public Sector Enterprises (BRPSE)
The Government established the Board for Reconstruction of Public Sector Enterprises (BRPSE) in December, 2004 as an advisory body to address the task of strengthening, modernization, reviving, restructuring of Central Public Sector Enterprises (CPSEs), and to advise the Government on strategies, measures and schemes related to them.
Based on the recommendations of BRPSE, the Government, till March, 2012 have approved revival of 43 sick CPSEs envisaging a total assistance of Rs. 25,908 crores (cash assistance of Rs. 4,313 crores and non-cash assistance of Rs. 21,595 crores).
Out of the 43 CPSEs approved for revival, 24 CPSEs posted profit/profit before tax during 2010-11. Out of these 24 CPSEs, 13 CPSEs posted profit/profit before tax consecutively for 3 years or more and have been declared as turnaround CPSEs.
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*With Inputs from M/o Heavy Industries & Public Enterprises.
