Revived EGoM with greater powers to look into PSE reforms

According to an official source,the EGoM,which was formed earlier to decide on the price for sale of government stake in PSEs,has been revived on March 5,as the government persuades the PSEs to ensure transparency and high standards of corporate governance in the organisations.

The EGoM has been given powers to decide on the number of shares that a PSE could buy back as well as the price at which it would have to buy back each share among other terms of reference.

Earlier,the department of public enterprises had issued guidelines for corporate governance standards for PSEs and had placed certain restrictions on PSE officials joining private commercial undertakings after retirement.

The government has already raked in Rs 21,000 crore from disinvestment proceeds and has budgeted Rs 24,000 crore in the current fiscal. On March 8,the government will sell 12.5 per cent stake in Rashtriya Chemicals and Fertilisers.

FOR REFORMS

The EGoM,which was formed earlier to decide on the price for sale of government stake in PSEs,has been revived.

The focus now would be on ensuring transparency and high standards of corporate governance in these organisations

The EGoM would also decide on the number of shares that a PSE could buy back and its price

Earlier the department of public enterprises had come out with governance guidelines for PSUs