A PSU gives itself a mini CVC

The PSU says this is a way of creating greater transparency in the functioning of the corporation and setting up corporate governance standards in government undertakings. The committee will deal with ‘‘issues/complaints’’ with ‘‘specific written approval of the CMD’’ and will submit its findings to the CMD.

While PSUs are allowed to have non-official directors on their boards, this is the first time any PSU has set up a high-powered committee with high-profile members.

In an internal memo on October 10, Power Grid chairman R P Singh said the committee would ‘‘advise on various issues related with procurement, project execution and financial aspects raised by external agencies ie auditors, other agencies etc.’’ Besides giving inquiry reports on the matters referred to it, the committee will also suggest measures to improve the existing system and procedures. The committee will examine bidding documents, contract agreements, evaluation reports, procurement policies and policies objected in audit paras/queries/complaint/issues. PowerGrid Chairman Singh told The Indian Express that it was the first time ever that a PSU had decided to set up such a committee to subject its working to internal monitoring by eminent people. Singh said: ‘‘Many times, progress of PSUs is stalled by negative forces who spread false information about the corporation amongst government agencies and offices and sometimes we may not get a chance to explain. The committee’s findings could help maintain proper checks and counter-checks internally and will also (give us) public credibility.’’

Vittal, when contacted, said: ‘‘The committee is a part of the ongoing exercise in raising the standards of corporate governance. It will also help maintain internal checks in a corporation.’’ Will his role there create protocol problems as he will report to the CMD who had to report to him in the past? Vittal said: ‘‘I was made a member of the Group of Ministers on Telecom and IT at a time when the CVC was not a statutory body. Even then issues of protocol had come up, but I am clear I am not part of any committee or group only because of my position but because of my expertise in an area.’’