100 CPSEs in a bind as key posts vacant

Delay in filling vacant posts in PESB the main reason; No CMD for RINL at key juncture

Visakhapatnam: Functioning of over 100 Central Public Sector Enterprises (CPSEs) like Rashtriya Ispat Nigam Limited is adversely hit due to abnormal delay in filling the vacant posts of Chairman and Members of Public Enterprises Selection Board (PESB). PESB is mandated to recruit Chairmen, Managing Directors and Directors of the Government of India-owned CPSEs.

RINL, which has its headquarters in Visakhapatnam, is also in a bind as the selection process for the Chairman-cum-Managing Director and Director (Personnel) is not completed. The CMD post is vacant since May and Director (Personnel) since June at a time when the Cabinet Committee on Economic Affairs on January 27 gave its approval for 100 per cent privatisation of the Navratna Company.

Alok K Roy, president of National Confederation of Officers' Associations (NCOA), told Bizz Buzz that the PESB, which should have a Chairman and three members at present, does not have a quorum to hold interviews. The posts of Chairman and one member are lying vacant for a long time. Presence of three is required to have quorum.

Roy said almost 50 per cent of posts in PSU boards are lying vacant due to the delay. Even after holding interviews among short-listed candidates, it will take at least five months to get clearances from the Central Vigilance Commission (CVC), Central Bureau of Investigation (CBI) and Intelligence Bureau (IB).

"Interviews of CMD and DP of RINL are pending for a long time. Without a full board, it is difficult to ensure efficient functioning of CPSEs," opined Katam SS Chandra, joint secretary, Steel Executives' Federation of India (SEFI).

PESB is a high powered body constituted by Government of India vide Resolution dated March 3, 1987, which was subsequently amended from time-to-time, the latest being on November 11, 2008. The PESB has been set up with the objective of evolving a sound managerial policy for the Central Public Sector Enterprises (CPSEs) and in particular, to advise the government on the appointments to their top management positions.

"We, on behalf of NCOA, which represents around 2.5 lakh executives of CPSES, would like to draw your kind attention towards the vacant position for the Chairman of PESB since long, which has affected the entire selection and placement of personnel to the posts of Chairman, Managing Director or Chairman-cum-Managing Director and Functional Directors in CPSEs," Roy and confederation general secretary V K Tomar stated in a recent representation to Prime Minister Narendra Modi.

"However non-filling of key positions in over 100 CPSEs since more than past six months due to delay in appointment of PESB Chairman is impacting the entire spirit and has the risk to impact your vision towards faster economic growth," they pointed out. There is also buzz that the Government of India may scrap the PESB. The board level appointments to downsized PSUs may be entrusted to the administrative ministries and departments, a CPSE senior executive said seeking anonymity.