Amit Tandon's article, "Why listing of PSUs won't be easy" (March 16) discusses how listed public sector undertakings that should act as torchbearers for adherence to government laws and rules are lagging behind on crucial parameters. The inadequate number of independent directors on PSU boards has been cited as a reason for their state of affairs.
Members of PSU boards are hand-picked through a government-controlled process in which those who are competent or rather, those who are politically compliant, are preferred. The presence of independent directors limits the scope of manoeuvring big commercial contracts and interferences in appointments and promotions.
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The inability to appoint women directors might be due to the low percentage of women employees in PSUs as well as few opportunities for their growth, thanks to the "glass ceiling" in place.
What is indeed surprising is that PSUs spend less than the stipulated two per cent of average profit before tax - and less than what some private sector companies do - on corporate social responsibility. Have PSUs shifted to profit retention to such an extent that the CSR norm under the Companies Act is being flouted?
So, if the public sector general insurance companies are listed, will the government develop them in a manner to serve as an exception, at the least?
Y G Chouksey, Pune
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