Par panel voices concern over decline in permanent employees at CPSEs

A parliamentary panel on Tuesday expressed concerns over the gradual decline in the number of permanent employees in CPSEs, and suggested the state-owned firms to promote jobs and desist from engaging workers on a contract basis.

The 31-member department-related Parliamentary Standing Committee on Industry, headed by Rajya Sabha Member K Keshava Rao, tabled its Report on Demands for Grants pertaining to the Department of Public Enterprises (Ministry of Heavy Industries and Public Enterprises) to the Rajya Sabha.

The committee also made a case for reviewing the existing memorandum of understanding (MoU) system to incorporate a new evaluation parameter on 'non-filling up of vacant posts of non-official directors on the boards of CPSEs' as a deterrent for CPSEs which do not take timely action to fill up such vacant posts.

Further, it stressed upon the need to fill up 313 vacancies in boards of various CPSEs expeditiously as professionalisation of the boards is extremely essential to ensure good corporate governance.

CPSEs across sectors provided employment to 15,14,064 people at the end of March 2019, down from 15,54,971 at end-March 2018, as per the Public Enterprises Survey 2018-19.

The panel also suggested the Department of Public Enterprises to play a more pro-active role for handholding such CPSEs that are already doing business in 'high priority areas' to excel their performance.

It has suggested calculating the net worth of land of such central public sector enterprises (CPSEs) identified for closure or strategic disinvestment at the prevalent market rate, at the time of disposal.

According to the report, the committee is also in favour of conducting outreach programmes to sensitise CPSEs to leverage their net worth for infusion into their capex (capital expenditure) fund.

While expressing satisfaction over the almost 100 per cent utilisation of funds allocated under the scheme 'Research, Development & Consultancy (RDC)' in North Eastern Region, the panel took serious note of the non-utilisation of funds allocated under its another flagship scheme 'Counselling Retraining & Re-employment (CRR)' in the same region.

It also suggested several measures to revisit the CRR Scheme in North Eastern Region.