Finance Ministry meet Heads of CPSEs to boost Capital Expenditure & to ensure quickly payments to Vendors
India's Central Public Sector Enterprises (CPSEs) can become globally competitive, according to the Confederation of Indian Industry (CII). 'The Rise of the Elephant: Enhancing Competitiveness of Central Public Sector Enterprises' which is due for formal release on 18 November identifies specific actions to boost the competitiveness of public sector enterprises, the CII said.
The report highlights that there are examples internationally and a few in India to demonstrate that efficient operations and fulfilment of social obligations are not contradictory. At the core of the Competitiveness Model is clarity on the roadmap for CPSEs and the objectives. The other key element is clear role demarcation.
An independent and empowered board will transform CPSEs from being ministry-driven to Board-driven. The intent is that the board, comprising independent experts, would take all strategic decisions, thereby increasing the speed and efficacy of decision-making, CII added.
Ensuring a level playing field between CPSEs and private players is another key element of the Competitiveness Model. CPSEs must be subject to the same governance standards as private players. Excessive scrutiny from the Central Vigilance Commission and the Comptroller Auditor General, coupled with the threat of Central Bureau of Investigations often leads to stalled or over-cautious decision-making in CPSEs. Further, distinction must be made between mala-fide action and taking a business risk.
Becoming future ready is the last element of the Competitiveness Model. CPSEs must develop internal competencies in technologies such as Artificial Intelligence, Internet of Things, blockchain, and big data analytics amongst others. Appropriate adoption of these technologies is the key to future competitiveness.
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