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| Cabinet okays new corporate governance manual |
| BS Reporter / Kolkata/ Bhubaneswar Nov 14, 2009, 00:54 IST |
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The Orissa cabinet chaired by the chief minister Naveen Patnaik today put its seal of approval on the new corporate governance manual drafted by the Hyderabad based Administrative Staff College of India (ASCI).
This will apply to 32 statutory corporations, state owned enterprises where 51 percent or more of the share capital is held by the Orissa government and the companies are registered under Companies Act 1956.The new manual seeks to consolidate the position of the PSEs after various reform measures were implemented in the functioning of these enterprises, industry secretary, Saurabh Garg said.
Garg said, the manual envisages to have efficient and effective board of directors in PSEs. The secretary of an administrative department will develop the mandate for a state owned enterprise in consultation with the chief secretary, secretary in the public enterprises (PE) department and representatives from the finance and the planning and co-ordination department every five year.
Similarly, the concerned PSE will have to sign a memorandum of understanding (MoU) with the administrative department. Senior executives like the managing directors of these units may be appointed from the market based whenever necessary. Operational flexibility will be provided to the state PSEs, he added.
Briefing the media after the meeting the chief secretary T K Mishra said, the cabinet approved a proposal to enact Orissa Toll Tax, 2009. Under it, the concessioner will be given the right to collect toll tax from the roads to be developed in the public-private-partnership (PPP). A bill will be introduced in the state assembly for the purpose.
Works secretary, S K Ray said, states like Andhra Pradesh and Rajasthan have already enacted such acts and the toll rate as fixed by the National Highway Authority of India (NHAI) may be slightly modified in the state. Since there is huge requirement for infrastructure and the state can not bear all the costs, the PPP model for road development will be adopted.
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