Navratna Psus Likely To Figure At Next Cabinet Meet

The Union cabinet is likely to consider the industry ministrys proposal on globalisation of `navratna public sector undertakings (PSUs) at its next meeting.

Having secured the opinion of the administrative ministries dealing with the nine PSUs last week, the industry ministry sent a note to the cabinet seeking autonomy to these corporations to enable them to become global giants.

We would like it to be taken up at the next meeting of the cabinet, ministry sources said.

Administrative ministries had agreed to various proposals suggested in a draft note circulated in May after industry minister Murasoli Maran held a joint meeting with PSU chiefs and secretaries of the concerned ministries.

Asked if major changes were suggested by administrative ministries, sources said largely the autonomy priniciple was accepted but some ministries made some corporation specific suggestions.

Four of the nine PSUs come under the petroleum ministry, which is understood to have suggested autonomy within the framework of the administrative price mechanism (APM) which governs the pricing of petroleum products.

These PSUs are Indian Oil Corporation, Hindustan Petroleum, Bharat Petroleum and Oil and Natural Gas Corporation (ONGC).

Others in the list of navratnas are Indian drugs and Pharmaceuticals Ltd (IDPL), Bharat Heavy Electricals Ltd (Bhel), National Thermal Power Corporation (NTPC), Steel Authority of India Ltd (SAIL) and Videsh Sanchar Nigam Ltd.

The nine PSUs have been constrained in expanding operations in view of lack of decision making powers at the board level and multi-layer decision making system.

A number of PSU chiefs, including the NTPC chairman Rajendra Singh, and Bhel chief executive R K D Shah, had earlier suggested cutting down the delay in taking commercial decisions if the PSUs are to compete nationally and globally.

Accordingly, the ministry has proposed various measures including administrative reforms and toning up of financial decision making process.Sources said the ministry had prepared a single note covering all the PSUs for the gloablisation strategy, when asked if specific suggestions from administrative ministries were incorporated.

While the ministry has proposed restructuring of the boards of these PSUs with emphasis on professionalisation, it has also made it clear that there would not be any contingent liability on the government of any financial decisions taken by these corporations.

But the empowered boards would be given substantial financial decision making powers in the areas of financial and technology joint ventures, capital investment and mopping up of resources through external commercial borrowings within the framework of finance ministrys guidelines.