MINISTER OF THE STATE IN THE MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
(SHRI RAGHAUNATH JHA)
(a) Memorandum of Understanding (MoU) signed annually between Central Public Sector
Enterprises (CPSEs) and the concerned administrative Ministries/ Departments / Holding
Companies, inter-alia, indicate targets for different parameters like Gross Sales, Gross
Margin, Production, etc,
(b) At the end of the financial year,the performance of the MoU signing CPSEs are evaluated
on the basis of the actual achievement against the corresponding MoU targets.The MOU Rating
of the CPSEs for the last three years is given below:
Year Ratings
Excellent Very-Good Good Fair
2005-06 49 32 15 06
2006-07 46 37 13 06
2007-08 55 34 15 08
(c) Reasons for shortfall in achieving the envisaged targets,inter alia, may include market
conditions, sub optimal productivity, delay in availability of critical raw materials, plant
breakdown, etc.
(d) The performance of the CPSEs is reviewed and monitored by the concerned administrative
Ministries/ Departments, In order to improve the performance of CPSEs, steps are taken by
the concerned administrative Ministries / Departments and CPSEs.