Govt sets MoU targets for 234 CPSEs

After a considerable delay, the Department of Public Enterprises (DPE) has completed the memorandum of understanding (MoU) or the incentive-based target setting exercise for financial yaer 2016-17 for public sector firms, setting targets for 234 of India's top state-run companies.

The MoU targets help the central public sector enterprises (CPSEs) meet their investment goals. The process entrusted to the DPE was completed through consultation with the administrative Ministry, NITI Aayog and Ministry of Programme Implementation.

The 234 CPSEs for whom targets have been fixed include Maharatna, Navratna, Miniratnas and other CPSEs.

"Another 140 CPSEs were exempted due to various reasons which include being a subsidiary company where their output have been taken in the main CPSEs, CPSEs under closure, CPSEs yet to start operations and CPSEs under construction," the DPE said.

The MoU is a negotiated agreement and contract between the administrative ministry or department or holding CPSE, which means the majority shareholder and the management of the CPSE, to fix the targets before the beginning of the financial year.

The DPE said that the exercise involved 518 meetings in 118 days (83 working days), even on holidays.