Friday, November 26, 2021

Selection for vacant top posts in CPSEs to resume

The selection process was halted after the government amended a nearly three-decade-old resolution last June.

Written by Amitav Ranjan |
February 20, 2017 2:42:28 am

AFTER AN eight-month halt, the selection process for board members in central public sector enterprises (CPSEs) is set to resume next week, following Cabinet approval to guidelines for hiring private sector professionals in them. Sources said that the Public Enterprises Selection Board (PSEB) would be issuing advertisements next week, seeking applications for the post of chairman-cum-managing director (CMD) in the CPSEs. “Ads for director-level posts would be issued thereafter,” a source said. In all, there are 34 posts of CMDs and executive directors, which have been lying vacant or are due to get vacant in the next six months. Nineteen of these are that of CMDs, including that of Maharatnas like Oil & Natural Gas Corp.

Watch what else is making news:

The selection process was halted after the government amended a nearly three-decade-old resolution last June to allow private sector professionals in senior positions at the CPSEs. This sudden alteration created confusion over the criteria to be applied for private professionals’ eligibility to the four different grades of CPSEs — A, B, C and D. Of the 181 scheduled CPSEs, 64 are in Schedule A, 68 in B, 45 in C and 4 in D.

Another dilemma was the current designation of the applicants that would be considered as cut-off for CMD post and the director post. After months of dilly-dally, the Appointments Committee of the Cabinet (ACC) this week fixed annual turnover of the private parent company as the criteria for assigning private sector candidates either to Schedule A, B, C or D.

It decided that candidates who work in private companies with annual turnover of Rs 10,000 crore would be eligible to apply for vacancies in Schedule A, those from Rs 5,000 crore turnover company in Schedule B, Rs 3,500 crore in Schedule C and Rs 1,000 crore in Schedule D.

As for second-stage eligibility of an individual for a post, the ACC decided that only those who were currently on the Board of Directors of the private company would be allowed to apply for CMD’s post. For being eligible to a board director’s job, the professional must hold a rank below in the private firm.

The Cabinet on June 1 last year approved inclusion of private sector employees by amending a March 3, 1987 resolution with the stated aim to provide a wider pool of professionals for selection. These applicants were to be considered as non-internal candidates for a period of five years.

However, the subsequent confusion stopped PESB advertisements with the last one issued for Director (Marketing) for Hindustan Organic Chemicals Ltd on June 1, 2016. A subsequent ad on June 19 for the post of MD in Bengal Chemicals & Pharmaceuticals Ltd was withdrawn on July 12.

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Jobs News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard