The government has issued a circular on March 8 clarifying the role of chairman who are political appointee in most of the PSUs owned by government
Gujarat government has made the position of chairman or political appointee in public sector undertakings (PSUs) more powerful and important.
The government has issued a circular on March 8 clarifying the role of chairman who are political appointee in most of the PSUs owned by government. With the implementation of this circular, every decision should be taken with the proper consultation with the chairman only.
The finance department, while issuing this circular also mentioned that in a confidential report submitted to Gujarat government, in one case of important PSU, the state government observed that the functioning of state PSUs could be more improved, if there is better clarity about the role and functions of chairman, managing director and Board.
The circular mentioned that every important matters of the PSUs, chairman should be kept informed about important decision and matter. Chairman should be consulted before the board meeting. The government has necessitated that the managing director who is civil service official has to inform the chairman on sensitive issues, important matters and policy issues. The government has fixed the responsibility of managing director to maintain communication continue with the chairman.
The circular also suggests that managing director should brief chairman on important issues and confer with chairman before going to board. Every agenda and item has to be taken up in the board with the prior approval from the chairman. At least one government representative should be on the board and delegation of powers in PSUs have to be revisited at regular interval.
A senior official in the government said, “The purported scam in GIDC involving role of two senior IAS officials of state government has prompted the government to issue this guideline. The government had given the probe to former chief vigilance commissioner Manjula Subramaniam and she had made this recommendation in her report to government.”
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