A Group of Ministers (GoM) headed by Finance Minister P Chidambaram has given approval to a fixed three-year tenure for heads of State-owned entities, a move which would allow them to continue at the helm even after crossing their age of superannuation.
The Pioneer had first reported on May 14, that the GoM has approved suggestion which had been made by a panel of experts formed for suggesting reforms in PSUs headed by former SAIl Chairman S K Roongta.
The panel in a slew of measures aimed at bringing greater transparency and accountability in the functioning of PSUs, had suggested a fixed term for heads for such entities, as well as had even suggested a hike in their retirement age from 60 years to 63 years. It had even recommended relaxing the age for Independent Directors on boards of PSUs from 65 years to 70 years.
According to PTI, the ministerial panel has cleared the suggestion on fixed term for PSU heads, quoting a top official, however, there was no clarity in the report on whether the retirement age limit for them has been increased or not.
Currently, all directors as well as chairman of public sector enterprises compulsorily retire on reaching the superannuation age of 60 years. A fixed tenure would mean that some would have only a very limited time on the board to shape policies.
"The GoM, headed by Finance Minister P Chidambaram, has approved a fixed tenure of 3 years for Chairman and Managing Directors of PSU," the agency report said quoting a top official.
The recommendation of the GoM will now go the Cabinet for approval, he was further quoted as saying.