Window for pvt entry into CPSEs open; PESB takes steps to widen talent pool

Lateral entry into government has been held over, but the Public Enterprise Selection Board (PESB) continues to provide a platform for people in the private sector to get senior posts in central public-sector enterprises (CPSEs).

Its recent advertisement for the post of chairman and managing director of Fertilisers and Chemicals Travancore allows applicants from private-sector companies with an annual turnover of Rs 1,500 crore or more. But they have to meet the other criteria to get the job.

Over the past one year, the PESB has taken steps to expand the talent pool from which it selects candidates. The board allows applicants from financial institutions, autonomous bodies, and government banks.

It has standardised the qualifications required for various posts. For instance, for the post of director (finance) a person must be a chartered or cost accountant, or have a full-time MBA or a post-graduate diploma with specialisation in finance.

The board, in collaboration with the Capacity Development Commission, had invited Larsen and Toubro, a private-sector company, along with Bharat Petroleum Corporation Ltd, to share their strategies in identifying leaders early with Maharatna firms. The idea was to push enterprises towards building a succession plan within their human resource systems.

“Both companies have good practices for managing their human resources and succession is built into their systems. Following this exercise all Maharatna companies have devised their own strategies for identifying and investing in potential leaders early on,” a senior government official said. Mini-Ratna companies too are doing a similar exercise, according to official sources.

This means companies have to promote their staff in a timely manner and create specialisations and training opportunities, among other things.

The board, for instance, interviews 12 candidates for each position. Of these five can be from within. Other candidates can be from other CPSEs both from same and other sectors as well. Two candidates are also shortlisted from a state government or private sector organisations. 

“It has been often found that there were not enough internal candidates in terms of pay scale, exposure, etc. A chairman-cum-managing director should have an assignment as director, but that is not possible without timely promotion,” the official added.

However, to deal with the issue the board has made the list of potential candidates more fungible and invited a higher number of external candidates if internal ones are not adequate in number, thereby widening the talent pool.

“There is more transparency in recruitment. There is clarity in government on getting the best for CPSEs. If any CPSE does not agree with our standardised processes it can approach the Appointments Committee of the Cabinet directly,” the official said.

A few months ago, the board, for future appointments, started a database of candidates in whom it saw potential but could not recruit them. With automation, the PESB has reduced the time it takes to submit and shortlist applications. From 60 days earlier it now takes about a month to receive applications.

Another 10-25 days are required for shortlisting the candidates, which is an automated as well as a manual process. This step is important because only in shortlisting is the seniority of candidates taken into account. In the final selection, the official said, only talent matters. 

“Seniority and merit have to be balanced,” another government official said.  

The PESB has almost cleared the backlog due to the pandemic. There are “unforeseen vacancies”, which arise when a post is left by the incumbent due to promotion or transfer. 

Government officials say the only challenge now is getting adequate applications for CPSEs in line for disinvestment.