Question : PRODUCTION AND EMPLOYMENT IN PSES



(a) the comparative data of production and employment in Public Sector Enterprises (PSEs) for the last three years and the current year;

(b) whether internal manager motivation programme of Performance Related Pay has been implemented in Navratna, Miniratna PSEs;

(c) if so, the details of such PSEs;

(d) whether there is increase in management costs of these organizations after implementation of PRP; and

(e) if so, the details thereof and the reasons therefor?

Answer given by the minister


THE MINISTER OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES (SHRI PRAFUL PATEL)

(a): As per information available in Public Enterprises Survey (2010-11) and (2011-12), which were laid in the Parliament in the respective years, the production (in terms of sales) and the number of employees in Central Public Sector Enterprises (CPSEs) during the last three years have been as shown in the Table-1 below.


Table-1 Years Production in Employment Salary & Wages terms of sales (in numbers) (`in crore) ( ``in crore)
2009-10 12,44,805 14,89,818 96,210
2010-11 14,98,018 14,39,995 98,402
2011-12 18,41,927 13,98,313 1,05,407

(b) & (c): Performance Related Pay (PRP) is a powerful management tool to motivate the executives and non-unionised supervisors, including managers of all the Central Public Sector Enterprises (CPSEs), irrespective of their Navratna and Miniratna status. PRP is linked to the profits of the CPSE and the performance of the individual executives.

(d) & (e): As may be seen from Table -1 above, the salaries and wages in CPSEs increased from `96,210 crores in (2009-10) to `1,05,407 in (2011-12), which include the PRP component. As per Public Enterprises Survey (2010-11 and 2011-12), the share of ‘salaries and wages’ as a component of ‘ Net Value Addition’ by CPSEs during these three years have, however, remained the same at around 23 per cent.