Public sector chiefs likely to get fixed tenure of 3 yrs

It is being considered by the group of ministers on central public sector undertakings. The plan for a fixed tenure is meant to ensure the chair of the PSU chiefs does not remain a revolving one.

Current norms of the department of public enterprises encourage the companies to appoint as chiefs who have at least two years to go before the retirement age. But there is no rule that it has to be so.

The process of appointment of PSU chiefs are often so long that this requirement is often violated.

The government had decided to increase the age of retirement from 58 to 60 years of board level and senior management of central public sector enterprises CPSEs in May 1998. Two years later,sick CPSEs were allowed to roll back the age of superannuation to 58 years with the approval of the Union Cabinet. Subsequently in August 2001,the Cabinet delegated the authority to the minister-in-charge to approve proposals for roll back of retirement age for all CPSEs. This decision was again reviewed in April 2005 and the power to roll back retirement of all categories of employees of CPSEs was vested with the Cabinet.

In 2007 the government reverted back to its earlier decision of empowering the minister provided the concerned CPSE reported net profits and maintained a positive net worth during the last three years. The CPSE should should not avail any budgetary support during the last three years. The proposal should also be vetted by the board of CPSEs and have the concurrence of the concerned ministrys financial advisor.