Concerns with PSU recruitments

What is the issue?

In recent times, the recruitment process of PSUs are not being done according to the Public Enterprises Selection Board (PESB).

What is the role of PESB?

• The objective of PESB is to evolve a sound managerial policy for the Central Public Sector Enterprises.
• It is responsible for the selection and placement of personnel in the posts of Chairman, Managing Director or Chairman-cum-Managing Director (Level-I), and Functional Director (Level-II) in PSEs as well as for other posts specified by the Government.
• It advises the government on matters relating to appointments, extension of tenure and termination of services of the personnel of the above mentioned levels.
• PESB also has a data bank containing all information relating to the performance of PSEs and its officers.

What are recent concerns with recruitment process in PSUs?

• Coal India Ltd - The chief of Central Coalfields, a subsidiary of Coal India Ltd (CIL) assumed additional charge of chairman and managing director of Coal India Ltd (CIL).
• This is in-spite of the chief’s rejection for the post by the PESB few months before his recruitment.
• Oil & Natural Gas Corporation - The petroleum ministry proposed to recruit a person as the chairman of ONGC with just 1 year validity and quarterly appraisal to decide his further appointment.
• This was not accepted and the Appointments Committee of the Cabinet and the person was made CMD till his superannuation in 2021.
• Banks Board Bureau - Its broad agenda is to improve governance at Public Sector Banks and advise government on top-level appointments.
• But appointment of those officials are scrutinised and decided by the Finance ministry and not under the preview of BBB.
• There are also instances where appointments in top management of PNB, BOI took place and services of board members terminated completely bypassing the BBB.

What measures needs to be taken to address such concerns?

• The long standing tradition of interfering with the appointments of the PSUs by the governments needs to be  reduced.
• The recruitment process must be best left to the designated government machinery.
• The PSU chiefs also have to stand up to the superfluous intervention by the governments to bring about meaningful changes in the appointments, functioning and productivity of PSUs.

Source: Business Standard