In a move to ensure greater transparency and accountability in the selection and functioning of CMDs of public-sector entities, the Government has decided to fix a minimum three-year tenure for them. It also decided to extend their retirement age to 63 years from the present 60 years.
According to sources, panel of experts, set up for introducing reforms in Central Public Sector Enterprises (CPSEs), suggested a slew of measures which are expected to be sent to the Cabinet for clearance by end of May.
The age limit for Independent Directors has been relaxed by 5 years to 70 years. Independent Directors, who are normally retired bureaucrats, academicians, and professionals (and are
normally nominated by the Government) play a crucial role as conscience keepers by scrutinising and questioning the various decisions taken by the PSU Boards. Relaxation in their age limit would ensure their longer continuance in the boards.