(a) whether the Government propose to revise the Rules and
Procedure for high level appointments in Public Sector
Undertakings by streamlining the composition of Public
Enterprises Selection Board (PESB);
(b) if so, the reasons therefor;
(c) the main amendments likely to be made; and
(d) the status of the Board after withdrawal of its powers to
select officers for the Public Sector Enterprises?
MINISTER OF STATE OF DEPARTMENT OF PERSONNEL AND TRAINING AND
DEPARTMENT OF PENSION AND PENSIONERS` WELFARE IN THE MINISTRY OF
PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
(SMT. VASUNDHARA RAJE)
(a) to (d): A statement is placed on the Table of the Sabha.
Statement referred to in reply to parts (a) to (d) of Lok
Sabha Starred Question No.622 for answer on 10.5.2000.
The Government have made certain amendments/additions to some
of the provisions of Resolution No.27(21)EO/86(ACC) dated 3rd
March, 1987 by which the Public Enterprises Selection Board
was reconstituted. Those amendments have been published in
the Gazette of India: Extraordinary, dated April 20, 2000.
The changes effected are given below:
(i) As per the Resolution, one of the Members of
the PESB was to be a distinguished former
Chief Executive of a Public Sector Enterprise.
It did not give scope for considering the
appointment of a serving Chief Executive or
serving/former Chief Executive of a Private
Sector Enterprise or a Joint Sector
Enterprise. In order to widen the scope for
consideration, an amendment has been effected
so as to enable consideration of a serving or
former Chief Executive of a Public Sector or
Private Sector or Joint Sector Enterprise,
as a Member of the PESB.
(ii) In the Resolution, there was a provision for
appointment of a distinguished former civil
servant with experience in management of
Public Sector Enterprises or in areas of
finance, industry or economic affairs as a
member of the PESB. There was no scope for
considering a serving civil servant as a
Member. Therefore, an amendment has been made
to enable the Government to consider a serving
civil servant also for appointment as a
Member.
(iii) Another amendment relates to incorporating a
provision in the Resolution to the effect that
the Chairperson or a Member, who, on the date
of his appointment to the PESB, was in the
service of the Central or a State Government,
shall be deemed to have retired from such
service with effect from the date of his
appointment as Chairperson/Member, as the case
may be, of the PESB.
(iv) There was a provision in the Resolution that
`in special cases, recruitment may be made
from the organised services under the Central
Government. Such cases would be where,
because of special circumstances, it is
necessary to place a member of an organised
service in a Public Sector Enterprise or where
because of the nature of the enterprise or its
poor health, it would be difficult to attract
good professional managers on a tenure basis.`
However, there were no guidelines laid
down in the Resolution in regard to the above.
Therefore, a provision has been added in the
Resolution as below:
`In special circumstances, the appointment to
a particular post or posts in a Public Sector
Enterprise may be made other than through the
PESB with the prior and specific approval of
the Appointments Committee of the Cabinet.
The Appointments Committee of the Cabinet
while granting such an approval, will also
specify the body such as, Search Committee,
Selection Committee, or the Civil Services
Board, as the case may be, that shall make the
selection for that particular post or posts,
as well as the selection procedure to be
followed for filling the particular post or
posts.`
(v) To take care of situations where suitable
persons for consideration for appointments to
Board level posts in sick and potentially sick
Public Sector Undertakings on immediate
absorption basis might not be forthcoming,
Government had issued instructions on the 19th
June, 1998 to enable appointments of officers
of All India or Group `A` Central Services, on
deputation basis, to the posts of CMDs of sick
and potentially sick Public Sector
Undertakings, without insisting on the rule
of immediate absorption. The same has now
been included in the Resolution constituting
the PESB as below:
` In respect of sick and potentially sick
Public Sector Undertakings, the administrative
Secretary of the Ministry/Department
concerned, in consultation with the PESB and
with the approval of the Cabinet Secretary
could take a decision at any stage in the
process of recruitment to the post of
Chairman, Managing Director or
Chairman-cum-Managing Director of the Public
Sector Enterprise, to take a person on
deputation from any of the All India or Group
`A` Central Services without insisting on the
rule of immediate absorption.
The aforesaid amendments do not result in the withdrawal of
any of the existing powers of the PESB. There is no other
amendment proposal presently under consideration.