SCOPE for reforms in selection of PSUs chiefs

Standing Conference of Public Enterprises (SCOPE), an apex organisation pursuing interests of public sector enterprises, is seeking reforms in the selection process of directorial positions in the PSUs. The organisation has come out with its own reform agenda and will be submitting the recommendations to the administrative ministry, government of India later this month, a top official said.

“Presently, the succession planning has been the weak factor in PSUs. We are trying to reform the process of appointing directorial positions in various PSUs. Mainly, the duration of recruitment is very long and time consuming and we are suggesting for the reduction of time to less than four months from the present one year duration,” U D Choubey, director general, SCOPE said.

Addressing a press conference, here today after the 10th national workshop titled “The board interview”, organised for the benefit of higher officials of PSUs, he said the SCOPE has been discussing about the reform process at various levels and would take up with the department of public enterprises very soon to reduce the time taken to appoint directors.

Presently, more than 20 PSUs including two Maharatna companies like ONGC and IOC are headless due to slow pace of the entire process to select a new head for each of them, he said adding that the SCOPE has also sought an active role for itself in the selection process. In addition to this, more than 300 posts of independent directors are lying vacant in various PSUs and there is a separate process to fill up those vacancies, he said. It has also commissioned the Hay Group, an international HR consultancy firm, to conduct a study on the talent management in PSUs and submit a report. The consultant will interview over 100 PSUs and identify issues confronting the CEOs and give a report within the three months, he said.

“Unless the government brings in drastic reforms in the selection process of directors and chairmen in the PSUs, it would be difficult to manage the succession and talents in the public sector,” Choubey said.

SCOPE is organising need based programmes for member enterprises to help them understand new developments and prepare strategic plans to compete in increasingly competitive business environment. There are 246 PSUs functional in India including four Maharatna, 16 navaratna and 62 mini ratna companies with a combined net profit of about Rs 1 lakh crore. Of them, 47 are listed with 22 per cent of the total market cap at BSE.