Chairman of Standing Conference of Public Enterprises (SCOPE) and Steel Authority of India limited (SAIl) CS Verma came out in full support of greater operational autonomy and freedom for Public Sector Enterprises (PSEs) at the CII National Conference and Annual Session 2014 held at New Delhi on Friday.
As a panelist on the session ‘Role of PSEs in the modern Indian economy’, Verma categorically stated that Article 12 of the Constitution of India, which mandates PSEs to function as ‘extended arm of the Government’, runs contrary to the commercial interest of PSEs.
Underscoring the need for greater autonomy and professionalism in appointment of Board members, Verma said, ‘There is an emergent need to separate ownership and management in PSEs.’ Verma mooted the idea of initiating the Holding Company concept with Maharatnas and Navaratnas to kick in structural reforms in PSEs.
He also advocated the need to have experts in the selection of board level appointments for different grades of PSEs.The session was chaired by Member, Planning Commission, ArunMaira.Verma’s suggestions were met with approval and appreciation by other panelists on the dais, namely, CMD NTPC Arup Roy Choudhary, CMD Coal India NarsingRao and CMD MTNl AK Garg.
