To make the government directors more accountable, the bureaucrats who sit on the boards of central public sector companies will now be evaluated for their performance.
At present there are two government directors on the board of each of the central PSUs, barring Oil and Natural Gas Corp.
To remove the impression that the contribution of the government nominees on the boards of PSUs is negative, the government has formulated a proposal whereby the top manager of the company will assess the performance of the nominee of administrative ministry, sources told PTI.
The proposal has been debated at length at Board for Reconstruction of Public Enterprises and after months of deliberations it has been given a nod.
However, before the notification to this effect comes some more rounds of consultations at various levels will be required.
BRPSE, which has so far been concentrating more on formulating revival proposals for sick PSUs, has now started debating the macro issues regarding the PSUs.
In fact the first item in the terms of reference of the board is to advise the government on ways and means for strengthening public sector enterprises in general and making them more autonomous and professional.
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