Govt puts restrictions on PSU executives joining pvt firms

Top level public sector executives, including directors and chief executives, will not be able to join private firms after retirement or resignation unless they get a go-ahead from the government.

If they decide to join, they may have to pay damages to the government for violation as per the bond or agreement signed with the department concerned, says a circular issued by the Ministry of Heavy Industries and Public Enterprises.

“No functional director of the company, including chief executive who has retired/resigned from the service of the company ...shall accept any appointment or post ...in any company, whether Indian or foreign, with which the

company has or had business relations within one year from the date of retirement without prior approval of the government," the circular said.

The decision has been taken following some senior officials of finance, petroleum and other ministries joining private sector, who were later allegedly involved in lobbying for their new employers.

The changes in service rules of public enterprises, which have been incorporated in consultation with the Central Vigilance Commission (CVC), also debar violators from joining later as full-time or part-time directors in any PSU.

However, top officials may get permission to join the private sector if they had no official dealing with the new employer in the preceding five years or would not be involved in liasoning work or contact with the previous department.

While giving permission to join the private sector, the administrative ministry or the department would also ensure that they are not offered emoluments and benefits “far in excess” of those currently prevalent in the industry.

However, in case no decision is taken within 30 days of submitting application, the official can join the new job in private sector, the circular added.