Thursday, December 24, 2009

Year Enad Review-2009-of CPSE"s

YEAR END REVIEW-2009
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The Department of Public Enterprises is the nodal department for all Central Public Sector Enterprises (CPSEs) and formulates policy pertaining to the role of CPSEs in the economy. It lays down policy guidelines for performance improvement and evaluation, autonomy and financial delegation, personnel management and other related areas in respect of CPSEs. It also collects, evaluates and maintains information on several areas in respect of CPSEs. The DPE also acts as the interface between the various Parliamentary and Government organization and the CPSEs as a whole.



WAGE POLICY IN CPSEs



Revision of Scales of pay of executives in CPSEs following Industrial Dearness Allowances (IDA) pattern of pay scales with effect from 01.01.2007.



A. The Government, after due consideration of the recommendations of the 2nd PRC and also the recommendations of Committee of Secretaries (CoS), decided that the pay revision is to be implemented as a package. The decision of the government was conveyed vide DPEO.M. dated 26.11.2008 & 09.02.2009.



The salient features of these orders are as follows:-



i) Pay scales ranging from Rs. 12,600-32,500 for E-0 grade and to Rs. 80,000-1,25000 for Chief Executives of schedule ‘A’ CPSEs.

ii) A uniform fitment benefit @ 30% on basic pay plus DA @ 68.8% as on 01.01.2007.

iii) Rate of increment @ 3% of basic pay.

iv) Perks and allowances upto the maximum of 50% of basic pay, with provision of ‘Cafeteria Approach’.

v) PRP ranging from 40% to 200% of the basic pay.

vi) Superannuation benefit upto 30% of basic pay.

vii) Ceiling of gratuity in respect of executives and non-unionised supervisors raised to Rs. 10.00 Lakh w.e.f. 01.01.2007.

viii) Implementation of Pay Revision linked to affordability of the CPSE.

ix) The CPSE concerned have to finance pay revision from their own resources and no budgetary support will be provided.

x) An Anomalies Committee consisting of Secretaries of Department of Public Enterprises, Department of Expenditure and Department of Personnel & Training constituted to look into further specific issues/ problem that may arise in implementation of Governments orders on the recommendation of 2nd PRC.

xi) DPE will issue necessary instructions/clarifications whenever required in implementation of the decision on pay revision.





B. Further, based on the recommendations of the Committee of Ministers, government issued orders on 02.04.2009 to extend the following additional benefits:-



i) Benefit of merger of DA with basic pay for the purpose of fitment raising the fitment from 68.8% to 78.2%.

ii) Superannuation benefit upto 30% of basic pay + DA instead of basic pay alone.

iii) Limiting the expenditure on infrastructure to recurring cost of running the facilities with a ceiling of 10% of basic pay.

iv) Enhanced allowances could be effective from 26.11.2008 instead of from the date of issue of Presidential Directive provided the Presidential Directive is issued within one month from 02.04.2009.

v) These benefit to be extended to all CPSEs. Benefits as given in these O.Ms to be viewed as a total package. No change need be made in O.Ms dated 26.11.2008 and 09.02.2009.



COUNSELLING, RETRAINING & REDEPLOYMENT SCHEME


(i) The policy of the Government has been to implement reforms with a humane face. Moving in this direction, the Scheme of Counselling, Retraining and Redeployment (CRR) is being implemented by DPE as a social safety measure. Under this Scheme, separated employees of CPSEs are imparted short duration training to equip them with skill/expertise which, in turn, would enable them to take up, mainly, self-employment activities.



(ii) Implementation of the CRR Scheme is through the nodal training agencies which have been selected after ascertaining their capabilities to undertake such jobs. These agencies conduct training programmes through Employees Assistance Centers (EACs). From 2001-02 to 2008-09, around 1.46 lakh VRS optees have been retrained and around 65,000 redeployed.



(iii) During 2009-10, the target is to cover 8000 VRS optees against allocated funds of Rs.9.00 crore. 12 agencies having 43 Employees Assistance Centres (EACs) are on the job to achieve this target. From January, 2009 to December, 2009, 7600 VRS optees have been trained and out of these 3200 have since been redeployed. During this period, a sum of Rs.6.90 crore out of the allocated funds has been spent.



MEMORANDUM OF UNDERSTANDING (MOU)



i. 144 CPSEs signed MoU in 2008-09. 97 CPSEs signed MoU in 2009-10. It shows that the coverage of the CPSEs under the MoU system is growing every year.



ii. Hon’ble Prime Minister of India presented MoU Excellence Awards to 24 CPSEs for the year 2006-07 and 2007-08 on 15th October, 2009 at Vigyan Bhavan, New Delhi for their excellent performance in Public Sector Management. 38 CPSEs were presented MoU Excellence Certificates for the year 2006-07 and 45 CPSEs for the year 2007-08.



iii. In a conference of State Level Secretaries and CMDs of states PSEs held in August, 2009, a model MoU for State Level Public Enterprises (SLPE) was introduced.



iv. A website http://dpemou.nic.in, has been hosted by MoU Division, DPE with the assistance of NIC in the month of November, 2009. It is an MoU-Data Repository containing, interalia, MoU signed between the CPSE and the administrative Ministry, evaluation score card, trend of financial parameters of the CPSE during the last five years, CMIE report, Minutes of the Task Force Meeting on MoU etc.





PUBLIC ENTERPRISE SURVEY



During the year 2009 (January - till now), following activities were undertaken in the Survey Unit:



i) First Zonal Conference on State Level Public Sector Enterprises (SLPEs) of North-East Region was Organized on 5th March, 2009 in Guwahati.



ii) PE Survey (2007-08) was laid in both the Houses of Parliament on 25.2.2009.



iii) Mid-year Review (2008-09) of Central Public Sector Enterprises (CPSEs) was prepared.



iv) First National Survey on SLPEs (2006-07) was prepared



v) Conference of Secretaries of States & UTs on SLPEs was held on 27.8.2009.



vi) Management Information System (MIS) for SLPEs was launched on

27.08.2009.



vii) A Book titled “Central Public Sector Enterprises – Leading Companies of India Inc”, was launched on the occasion of the MOU Excellence awards ceremony held on 15.10.2009.


PUBLIC SECTOR MANAGEMENT



Organisation of Workshops/Seminars/Conferences


(i) The Department collaborated with Dun & Bradstreet in release of their publication titled “India’s Top PSUs 2009” on 9th January, 2009.



(ii) DPE in collaboration with UTI organized the Seminar on ‘Investment Insights’ on 15th January, 2009 in Kolkata.



(iii) DPE organized a one-day Workshop on “International Financial Reporting Standards’ on 28th January, 2009 in collaboration with the Institute of Chartered Accountant of India in New Delhi which was attended by more than 60 senior Finance executives of various Navratna and Miniratna CPSEs.



(iv) The first ever Conference of Non-official Directors of Central Public Sector Enterprises (CPSEs) was held on 22.7.2009 in Vigyan Bhawan, New Delhi with Institute of Company Secretaries of India (ICSI) as a knowledge partner. The Conference was attended by about 100 non-official Directors of various CPSEs, representatives of administrative Ministries/Departments and ICSI. During the Conference various issues related to role and responsibilities of non-official Directors were deliberated.





Important visits



(i) Mr. Uros Zver, Director of Projects, International Center for Promotion of Enterprises, Ljubljana, Slovenia on his visit to India met Secretary, DPE on 24th November, 2009. Matters such as short term programmes offered by ICPE to the executives of Indian Public Sector Enterprises(PSEs), Memorandum of Understanding between International Center for Promotion of Enterprises (ICPE) and Council of Scientific and Industrial Research (CSIR), pending ‘Headquarters Agreement’ between ICPE and Government of Slovenia and specific short-term training programmes for ‘Member Countries’ were discussed.



(ii) Secretary, Department of Public Enterprises led an Indian Delegation to China at the invitation of SASAC from 20th April, 2009 to 24th April, 2009. The delegation visited Shanghai and Beijing and interacted with senior officials of SASAC, SOEs of China and various industry chambers of China.



(iii) Secretary, Department of Public Enterprises made a visit to Paris (France) on 5th & 6th November, 2009 to participate in the OECD Working Group meeting on Privatization and Corporate Governance of State Owned Assets.



Appointment of non-official Directors on the Boards of CPSEs



77 names were recommended for appointment as non-official Directors on the Boards of various CPSEs.



POLICY PLANNING



(i) A mandatory cut of 10% has been effected mutatis-mutandis on the specified items of expenditure. A complete ban has been imposed on holding of meetings and conferences at 5-Star Hotels. There will be a ban on travel by air by first class and all domestic travel by air will take place only by economy class irrespective of the entitlements. Chief Executives officers of the CPSEs have been made responsible for ensuring the compliance of these measures.



(ii) Initiatives were taken to hold fourth CEO Enclave in association with BSE to familiarize the CPSEs about the benefits and procedure of listing its shares in a Stock Exchange.



BOARD FOR RECONSTRUCTION OF PUBLIC SECTOR ENTERPRISES (BRPSE)



Government set up a Board for Reconstruction of Public Sector Enterprises (BRPSE) in December, 2004 to advise the Government, inter alia, on measures to be taken to restructure / revival of sick Central Public Sector Enterprises (CPSEs).



Recommendations of BRPSE:



During the last 11 months ending November, 2009, 11 meetings of BRPSE have taken place. During this period, the Board had considered the proposals of 6 CPSEs and given its recommendations for revival of 3 CPSEs namely (i) Elgin Mills Company Ltd., (ii) Hindustan Prefab Ltd., and (iii) Burn Standard Company Ltd. and closure of 1CPSE i.e. Break Fast Food Unit of Hindustan Vegetable Oils Corporation Ltd. The balance 2 cases Viz. ITI Ltd. & Hindustan Photofilms Manufacturing Co. Ltd. have been remitted to the concerned administrative Ministries/Departments for resubmission.



Approval of the Government on the recommendations of BRPSE:



During the last 11 months ending November, 2009, based on the recommendations of BRPSE, Government have approved revival of 2CPSEs viz. (i) Instrumentation Ltd. and (ii) Hindustan Prefab Ltd. involving total assistance of Rs.725.72 crores (cash assistance of Rs.48.36 crores and non cash assistance of Rs.677.36 crores) from Govt. of India.

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