10 Orissa PSEs to sign MoUs by March-end

Ten Public Sector Enterprises (PSEs) in the state are likely to sign the Memorandum of Understanding (MoU) with their respective administrative departments by the end of this month.

The proposed signing of the MoU with the respective administrative departments follows the adoption of the new Corporate Governance Manual by the Orissa government couple of months back. The Orissa Construction Corporation (OCC) has already signed a MoU with the Water Resources department.

The new manual aims to improve the performance of the state owned PSEs and ensure accountability in their operations. Sources said, preliminary discussion was held with all the managing directors of ten PSEs who would sign MoUs with their respective administrative departments. These PSEs included Orissa Agro-Industries Corporation (OAIC), Orissa Small Industries Corporation (OSIC), Industrial Development Corporation of Orissa (Idcol), Orissa Bridge and Construction Corporation (OBCC), Orissa State Seeds Corporation (OSSC), Orissa Cashew Development Corporation (OCDC), Orissa Mining Corporation (OMC), Orissa State Civil Supplies Corporation (OSCSC), Orissa Hydro Power Corporation (OHPC) and Orissa State Beverages Corporation (OSBC). As per the new corporate manual, a MoU would have to be inked between the administrative department of the state government and the PSE board. It is the responsibility of the secretary of the concerned administrative department to ensure that the MoU is developed and executed. The managing directors of these PSEs have been asked to develop a set of key performance indicators based on the Corporate Plan for signing the MoU.

The MD of a PSE would have to specify the targets against each performance criteria and the support required from the state government to achieve the target.

Based on this, a composite MoU score would be developed which will be used to evaluate the performance of the concerned PSE. The MoU will form the basis for empowering the Board of Directors with authority and autonomy for accessing resources required for achieving the objectives envisaged in the MoU, sources added.