Latest News | PESB for Uniform Criteria, Wider Talent Pool in Board-level Appointments of PSUs

New Delhi, Aug 28 (PTI) With a view to promote transparency in the board-level appointments of central PSUs, public sector headhunter PESB has proposed a host of reforms that among other things include uniform criteria for senior posts, level-playing field for all and advance planning for filling vacancies.

In order to streamline the selection process, the Public Enterprises Selection Board (PESB), in its draft note on reforms issued on Friday, suggested avoiding repetitive interviews by clubbing the post schedule-wise or cognate group-wise.

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For instance, it said there should be standardised job description for identical posts of chairman/CMD/MD, Director (HR/Personnel), Director (Finance), Director (Marketing) and Director (Technical). The draft reforms suggest same qualification and experience for appointments for identical posts across central public sector enterprises (CPSEs).

In view of clubbing of posts, encouraging applications from all sectors, it is proposed to increase the minimum number of slots for short-listed candidates from 12 to 16, it said.

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As a result, a wide talent pool gets to participate from all categories including internal and external in the selection process.

It also suggested advertisements to be issued for vacancies falling during July 1 to June 30, one year prior to the date of vacancies.

"Uniform mandatory qualification and experience will lead to more competition, transparency and bring about parity," said a note on which the PESB has invited comments from the stakeholders by September 30, 2020.

PESB carries out board level selection for about 250 Central Public Sector Enterprises (CPSEs) which plays a very vital role in the growth of Indian economy.

It is to be noted that CPSEs annual gross turnover is around Rs 25.5 lakh crore, while net worth is pegged at Rs 11.8 lakh crore. They contributed about Rs 3.68 lakh crore to government exchequer in FY19.

Balance sheet of PSUs permits additional leverage of around Rs 25 lakh crore on capex in the next four years. This is about one-fourth of the National Infrastructure Pipeline (NIP) of Rs 111 lakh crore.

PESB chairman Rajiv Kumar, known for bold and systemic reforms, has brought in reforms in the PSU appointment process in his brief stint of just about four months. He is all set to join as the Election Commissioner.

In his previous avatar as the finance secretary, he was instrumental in bringing in fundamental changes in the banking sector and played a crucial role in merging 10 public sector banks into four.

He was also instrumental in brokering peace between the Centre and the Reserve Bank of India (RBI) that resulted in the smooth transfer of Rs 1.76 lakh crore of the central bank's surplus to the exchequer last year.

"Proposed reforms to revamp selection, simplify the processes, avoid repetitive interviews amongst the same pool, not allow to go slots vacant, encourage younger talent, allow movement of Execs at Board level amongst CPSEs of same schedule/cognate grp #PESBReforms," Kumar said in a tweet.

"The reforms designed to focus on integrity and comparative merit will ensure only best and brightest get the opportunity to helm the CPSEs. As the harbinger of growth and change enabling #AatmaNirbharBharat," he said.

The draft note has also pitched for greater participation in the selection process for senior CPSE vacancies from a wider talent pool.

Observing that the participation of candidates from state PSEs and private sector is allowed up to June 9, 2021 only as per the Appointments Committee of the Cabinet, the draft suggested that the approval should be extended till further orders.

Continuation of participation of candidates from CPSEs and the private sector would provide a wider pool and wider choice and create a healthy competition, the draft added.

"Interaction with bright candidates during my short PESB tenure reiterated my belief in strength of CPSEs who can b engine of growth if challenges are addressed. Putting a premium on integrity & merit in appointments assumes criticality, hence slew of reforms proposed @DoPTGoI," he said.

He was appointed PESB chairperson on April 29, 2020.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)