Not PM, ministers to decide on addl charge of CMD, MD in PSUs

The additional charge of CMD and MD in Central Public Sector Enterprises (CPSEs) will now be decided by the minister concerned and not the Prime Minister.
"The Appointments Committee of the Cabinet (ACC) has delegated its power to approve additional charge arrangements with respect to board level posts in Schedule 'C' and 'D' CPSEs to the Minister-in-charge of the concerned administrative ministry or department, irrespective of the period for which the additional charge is assigned," as per the new norms issued by Personnel Ministry.
The ACC is headed by Prime Minister Narendra Modi and has Home Minister Rajnath Singh as its lone member.

With the new rule, which amends 10-year-old guidelines, all additional charge arrangements for the post of Chairman- cum-Managing Director (CMD), Managing Director (MD) or Functional Directors will be decided by the ministers concerned only. They will be able to decide on the duration of such additional charge arrangements.
All public enterprises are categorised into four schedules namely--'A', 'B', 'C' & 'D'. The pay scales of chief executives and full time functional directors of public sector enterprises are linked with the schedule of the enterprise concerned.
Categorisation is based on criteria such as quantitative factors like investment, capital employed, net sales, profit, number of employees and qualitative factors like national importance, complexities of problems, level of technology, prospects for expansion and diversification of activities and competition from other sectors, etc.

There are 64 Schedule 'C' and 11 Schedule 'D' CPSEs.
Earlier, the ACC had delegated its power for entrusting additional charge arrangement in all scheduled CPSEs, to the respective ministries up to three months from the date of vacancy with the approval of minister-in-charge.
The proposals for additional charge beyond three months, up to a maximum of six months, are to be submitted to the Establishment Officer in Personnel Ministry for obtaining approval of the competent authority, as per the old guidelines issued in 2005.