Introduction

Department of Public Enterprises (DPE)

1. In their 52nd Report, the Estimates Committee of 3 rd Lok Sabha (1962-67) stressed
the need for setting up a centralized coordinating unit, which could also make
continuous appraisal of the performance of public enterprises. This led to the setting
up of the Bureau of Public Enterprises (BPE) in 1965 in the Ministry of Finance.
Subsequently, as a result of the reorganization of the Ministries/Departments of the
Union Government in September, 1985, BPE was made part of the Ministry of
Industry. In May, 1990, BPE was made a full-fledged Department known as the
Department of Public Enterprises (DPE). Presently, it is part of the Ministry of Heavy
Industries & Public Enterprises.

2. The Department of Public Enterprises is the nodal department for all the Central
Public Sector Enterprises (CPSEs) and formulates policy pertaining to CPSEs. It lays
down, in particular, policy guidelines on performance improvement and evaluation,
autonomy and financial delegation and personnel management in CPSEs. It
furthermore collects and maintains information on several areas in respect of CPSEs.

3. The Board for Reconstruction of Public Sector Enterprises (BRPSE) was set up in
December, 2004 to consider inter-alia, revival/restructuring proposals of sick/loss
making CPSEs and make suitable recommendations related thereto. The DPE
provides secretarial support to the BRPSE.

4. As per the Allocation of Business Rules of the Government, the following subjects
have been allocated to the DPE:
 Bureau of Public Enterprises including Industrial Management Pool.
 Coordination of matters of general policy of non-financial nature affecting all
public sector industrial and commercial undertakings.
 Matters relating to Memorandum of Understanding and mechanism for
improving the performance of public sector undertakings.
 Matters relating to Permanent Machinery of Arbitration for the Public Sector
Undertakings.
 Counselling, training and rehabilitation of employees in Central Public Sector
Undertakings under Voluntary Retirement Scheme.

5. In fulfilling its role, the Department coordinates with other Ministries, CPSEs and
concerned organizations. Some of the important tasks of the Department are listed
as follows:
 Co-ordination of matters of general policy of non-financial nature relating to
public sector enterprises.
 Issue of Guidelines to public sector enterprises.
1
  Formulation of Policies, pertaining to public sector enterprises, in areas like
board structures, personnel management, performance improvement, financial
management, wage settlement and vigilance management, etc.
 Investiture and review of Maharatna/Navratna/Mini Ratna status to CPSEs.
 Policy matters relating to composition of Board of Directors of CPSEs,
categorization of top posts, scheduling of CPSEs.
 Notification of pay scales of Board level executives as well as below Board
level personnel and unionized workers and the DA admissible thereon at
periodic intervals.
 Policy relating to deputation of Government officers to public sector
enterprises.
 Publication of the annual survey of CPSEs known as Public Enterprises
Survey.
 Memorandum of Understanding between the public sector enterprises and the
administrative Ministries/Departments.
 Policy relating to Voluntary Retirement Scheme in CPSEs.
 Matters relating to Counseling, Retraining and Redeployment Scheme (CRR)
for rationalized employees of CPSEs.
 Matters relating to Board for Reconstruction of Public Sector Enterprises
(BRPSE).
 Matters relating to reservation of posts in the public sector enterprises for
certain classes of citizens.
 Settlement of disputes through Permanent Machinery of Arbitration (PMA)
among Public Sector Enterprises and between Public Sector Enterprises and
government departments except disputes relating to tax matters.
 Matters relating to International Centre for Promotion of Enterprises (ICPE).
 Matters relating to Standing Conference of Public Enterprises (SCOPE).
 Matters relating to delegation of powers to Board of Directors.

6. Department of Public Enterprises is headed by a Secretary to the Government

of India who is assisted by an establishment with an overall sanctioned strength of
122 officers/personnel. The organizational structure of DPE is at Annex-1.
*****

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 Chapter – 1
Public Enterprises Survey

1.1 The Department of Public Enterprises (DPE) presents to Parliament every

year a comprehensive report known as the Public Enterprises Survey on the financial
and physical performance of Central Public Sector Enterprises (CPSEs) in the
country.

1.2 This report is prepared in compliance with the recommendations of the

Estimates Committee of 2nd Lok Sabha, which suggested in its 73 rd Report (1959-60)
that in addition to the individual annual report of each enterprise laid in the
Parliament, a separate consolidated report should be submitted to the Parliament
indicating Government's total appraisal of the working of public enterprises.
Accordingly, the first "Annual Report" (Public Enterprises Survey) was prepared in
1960-61.

1.3 The Public Enterprises Survey covers the Central Public Sector Enterprises
(CPSEs), which have been established either as Government Companies under the
Companies Act or as Statutory Corporations under specific statutes of Parliament.
The Survey, moreover, covers only those Government Companies in which Central
Government's share in paid up capital is more than fifty per cent including the
subsidiaries of such companies. This does not, however, include public sector
commercial banks and public sector insurance companies.

1.4 The basic data for the Survey is received on-line from various CPSEs, which is
compared/ validated with their Annual Reports. The data so compiled is subsequently
analyzed and presented by way of the annual report in two separate volumes.

1.4.1 Volume-1 of the Public Enterprises Survey contains a macro analysis of the
performance of CPSEs in terms of broad physical and financial parameters. Various
chapters in this Volume provide an overview of the key activities and the progress
made by the CPSEs during the year. It also covers aspects, such as, price policy,
productivity, R&D, international operations, human resource development, MoU
System and welfare measures.

1.4.2 Volume-2 contains an analysis of the performance of CPSEs in different

sectoral groups, disaggregated further into individual enterprises. It also contains
enterprise-wise analytical data relating to business activities, operational profile and
major financial and physical highlights for the last three years. This information also
comprises summarized balance sheet, profit and loss account and important
management ratios.

Performance of CPSEs during 2012-13

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 1.5 The Public Enterprise Survey (2012-13), which was the 53 rd report on the
performance of CPSEs, was laid in both the Houses of Parliament in the Budget
Session on 20th February, 2014.

1.6 Performance of CPSEs, during the year 2012-13, is summarized below:

1.6.1 There were 277 Central Public Sector Enterprises (CPSEs) under the
administrative control of various Ministries / Departments as on 31.3.2013. Out these
277 CPSEs, 229 were in operation and 48 CPSEs have yet to commence business.

1.6.2 Out of 229 operating CPSEs as many as 149 CPSEs showed profit during
2012-13, 79 CPSEs incurred losses during the year and one CPSE has shown No
Profit / No Loss.

1.6.3 The cumulative investment (paid up capital plus long terms loans), which was
Rs. 29 crore in 5 enterprises as on 31.3.1951, has gone up to Rs. 8,50,599 crore in
277 CPSEs as on 31.3.2013. While the increase in ‘investment’ in all the CPSEs
went up by 16.63% in 2012-13 over 2011-12, the increase in ‘capital employed’ went
up by 13.23% during the same period (Table-1). A great deal of investment in CPSEs
is being made through internal resources, that is, without any budgetary support.

1.6.4 The ‘net profit’ of profit making CPSEs (149) was Rs.1,43,559 crore in 2012-
13. The ‘net loss’ of loss making enterprises (79) stood at Rs. 28,260 crore during the
year.

1.6.5 In comparison to 2011-12, the profitability ratios in terms of net profit to

turnover / revenue, net profit to net worth and net profit to capital employed show a
increase, whereas dividend payout ratio has marginally declined in 2012-13.

1.6.6 Highlights of the performance of CPSEs during 2012-13 are at Annex-2. A

macro view of the performance of the 229 operating CPSEs over the years is at
Annex-3.

1.6.7 A comparison of the performance of CPSEs during 2012-13 vis-à-vis the

previous year i.e. 2011-12, is given below:

Table 1: Performance of CPSEs during 2012-13

(Rs. in crore)

Sr. No. Item / Indicator 2011-12 2012-13 % Growth over 11-12

1 Number of Operating CPSEs 225 229 1.78%
2 Turnover of (operating) CPSEs 18,22,049 19,45,777 6.79%
3 Income of (operating) CPSEs 18,04,614 19,31,149 7.01%
4 Investment in CPSEs

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 4.1 Total paid up capital 1,63,863 1,85,282 13.07%
4.2 Total investment 7,29,298 8,50,599 16.63%
(equity plus long term loans)
4.3 Capital employed 13,52,970 15,32,007 13.23%
(Paid up Capital + long term loans
and reserves & surplus)
5 Profit of (Profit making) CPSEs 1,25,929 1,43,559 14.00%
(161) (149)
6 Loss of (loss making) CPSEs (-) 27,683 (-) 28,260 2.08%
(64) (79)
7 Overall Net Profit 98,246 1,15,298 17.36%
8 Reserves and Surpluses of CPSEs 6,23,671 6,81,409 9.26%
9 Net Worth of CPSEs 7,76,161 8,51,245 9.67%
10 Contribution of CPSEs to Central 1,62,402 1,62,761 0.22%
Exchequer
11 Foreign exchange earnings of CPSEs 1,27,880 1,38,150 8.03%
12 Foreign exchange outgo of CPSEs 7,33,542 6,46,262 (-) 11.90%
13 Market Capitalisation (M_Cap) of 12,57,792 11,16,817 (-) 11.21%
45 listed CPSEs

1.7 Survey data, in a user friendly format was posted on DPE web-site on
02.4.2014 for 2012-13 PE Survey.

1.8 State Level Public Enterprises (SLPEs)

1.8.1 During the formulation of the 11th Five Year Plan, the Planning Commission
felt the need for a consolidated report on the performance of SLPEs on the lines of
the Public Enterprises Survey brought out by the Department for the Central Public
Sector Enterprises (CPSEs). The Planning Commission accordingly requested the
Department of Public Enterprises to bring out such a Report. Accordingly, the first
National Survey on State Level Public Enterprises (2006-07) was brought out by the
Department of Public Enterprises in August, 2009. This was followed by the second
National Survey on SLPEs (2007-08) which was released by the Hon’ble Minister
(HI&PE) in May 2012. The second National Survey was based on the data compiled
(on-line) from the different SLPEs across the country.

1.8.2 The 3rd National Survey on SLPEs covering two years of 2008-09 & 2009-10
was released during October 2013. Out of the 863 SLPEs covered in this Survey, as
many as 624 SLPEs provided the information on the performance of their SLPEs for
3rd National Survey on SLPEs.
5
1.9 Scheme in respect of Skill Development / Training of Executives &
Employees in SLPEs
1.9.1 Keeping in view the multi-dimensional mandate and the need to improve the
performance of SLPEs and based on the recommendation of the Standing
Committee of Secretaries of Department/Bureau of Public Enterprises in States /
UTs, this new plan scheme has been started in 2012-13. The objective of the
scheme is to impart training to the personnel of SLPEs for improving their
knowledge/skills and thereby aid in enhancing the overall productivity of the
enterprise.

1.9.2 During the first year of its operation, five training programmes under this
Scheme have been held at Bhopal, Delhi, Shimla, Bengaluru and Hyderabad
respectively. The total number of participants were around 230.

1.10 Plan Activities undertaken during 2013-14

1.10.1 During the current year, Expression of Interest (EoI) was invited from training
institutions including centers of excellence like IITs and IIMs. Based on the response
received, the following training programmes on Strategic Thinking and Leadership for
Senior Managers of SLPEs and Project Management for Execution Excellence were
held during FY 2013-14:
(i) November 11-15, 2013 Indian Institute of Management, Kolkata
(ii) November 11-15, 2013 Indian Institute of Management, Lucknow
(iii) November 28-29, 2013 Project Management Institute (PMI), Delhi
(iv) December 2-6, 2013 Indian Institute of Management, Kolkata
(v) December 2-6, 2013 Indian Institute of Management, Lucknow
1.10.2 A total number of 96 executives attended these training programmes.

1.11 Scheme in respect of Research Development and Consultancies (RDC)

1.11.1 Under the DPE’s Plan Scheme of RDC, the Survey Division organized the
following workshops during 2013-14:
 Meeting of the Standing Committee of Secretaries of Public Enterprises in
States / UTs was held in New Delhi on 10 th May, 2013 to discuss issues
relating to:
(i) Implementation of MoU system in States / UTs.
(ii) Operationalisation of the Plan Scheme for capacity building in SLPEs.
(iii) Making SLPE Survey more useful for policy formulations.
(iv) Guidelines issued by States/UTs.
(v) Twelfth Plan and SLPEs.

 A Workshop on SLPEs was held at Goa on generic issues relating to CPSEs

& SLPEs on 17th May, 2013. The topics discussed during the meeting included
MoU system in SLPEs, Corporate Governance, CRR, wage negotiations and
BRPSE, Capital Markets & PSUs, and selection of Non-official Directors.
6
 *****

7
 Chapter-2

Autonomy to CPSEs

The endeavour of the Government is to make Central Public Sector

Enterprises (CPSEs) autonomous board managed companies. Under the Articles of
Association, the Board of Directors of CPSEs enjoys autonomy in respect of
recruitment, promotion and other service conditions of below board level employees.
The Board of Directors of a CPSE exercises delegated powers subject to broad
policy guidelines issued by Government from time to time. The Government has
granted enhanced powers to the Boards of the profit making enterprises under
various schemes like Maharatna, Navratna and Miniratna as explained in the
following paragraphs.

2.1 MAHARATNA SCHEME

2.1.1 The Government had introduced the Navratna scheme, in 1997, to identify
Central Public Sector Enterprises (CPSEs) that had comparative advantages and to
support them in their drive to become global giants. The Boards of Navratna CPSEs
have been delegated powers in the areas of (i) capital expenditure, (ii) investment in
joint ventures/subsidiaries, (iii) mergers & acquisitions, (iv) human resources
management, etc.

2.1.2 The current criteria for grant of Navratna status are size neutral. Over the
years, some of the Navratna companies have grown very big and have considerably
larger operations than their peers. The CPSEs which are at the higher end of the
Navratna category and have potential to become Indian Multinational Companies
(MNCs) are recognized as a separate class, i.e. ‘Maharatna’. The higher category
acts as an incentive for other Navratna companies and provides brand value.

2.1.3 The salient features of the Maharatna scheme are at Annex-4.

2.1.4 Presently there are seven Maharatna CPSEs, viz. (i) Coal India Limited, (ii)
Bharat Heavy Electricals Limited, (iii) GAIL India Limited, (iv) Indian Oil Corporation
Limited, (v) NTPC Limited, (vi) Oil & Natural Gas Corporation Limited and (vii) Steel
Authority of India Limited. The performance of Maharatna CPSEs was reviewed by
the Inter-Ministerial Committee during the year 2013-14.

2.2 NAVRATNA CPSEs

2.2.1 Under this scheme, the Government has enhanced powers delegated to
CPSEs having comparative advantage and the potential to become global players.
Presently, there are 14 Navratna CPSEs as under:
(i) Bharat Electronics Limited
(ii) Bharat Petroleum Corporation Limited

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 (iii) Hindustan Aeronautics Limited
(iv) Hindustan Petroleum Corporation Limited
(v) Mahanagar Telephone Nigam Limited
(vi) National Aluminium Company Limited
(vii) Neyveli Lignite Corporation Limited
(viii) NMDC Limited
(ix) Oil India Limited
(x) Power Finance Corporation Limited
(xi) Power Grid Corporation of India Limited
(xii) Rashtriya Ispat Nigam Limited
(xiii) Rural Electrification Corporation Limited
(xiv) Shipping Corporation of India Limited

2.2.2 The eligibility conditions, the powers delegated to the Boards of Navratna
CPSEs and conditions/guidelines for exercise of delegated Navratna powers are at
Annex 5.

2.2.3 The proposals for grant of Navratna status to Engineers India Limited,
Container Corporation of India Limited and NBCC Limited were considered by the
Inter-Ministerial Committee (IMC) during the year 2013-14.

2.2.4 The proposal of Ministry of Steel for Rashtriya Ispat Nigam Limited retaining its
Navratna status till its listing with an extended target of 15 th November, 2014 was
considered and approved by the IMC and Apex Committee and orders for RINL
retaining its Navratna status till 15th November, 2014 were issued during the year.

2.3 Miniratna Scheme

2.3.1 In October 1997, the Government had also decided to grant enhanced
autonomy and delegation of financial powers to some other profit making companies
subject to certain eligibility conditions and guidelines to make them efficient and
competitive. These companies, called Miniratnas, are in two categories, namely,
Category- I and Category-II.
2.3.2 The salient features of Miniratna scheme are at Annex 6.
2.3.3 Presently, there are 72 Miniratna CPSEs (54 Category-I and 18 Category-II).
The list of these 72 Miniratna CPSEs is enclosed at Annex-7.

9
2.4 Other profit making CPSEs
2.4.1 Those CPSEs which have shown a profit in each of the 3 preceding
accounting years and have a positive net worth are categorized as ‘other profit
making CPSEs’. These CPSEs have been delegated enhanced powers as under:-
(i) Capital Expenditure: These CPSEs have the power to incur capital
expenditure up to Rs. 150 crore or equal to 50% of the Net worth, whichever is less.
The above delegation is subject to the following conditions:
(a) Inclusion of the project in the approved Five Year and Annual Plans and
outlays provided for;
(b) The required funds can be found from the internal resources of the company
and extra budgetary resources (EIBR) and the expenditure is incurred on
schemes included in the capital budget approved by the Government.

(ii) Tours abroad of functional Directors: The Chief Executive of these CPSEs
have the power to approve business tours abroad of functional directors up to
duration of 5 days (other than study tours, seminars, etc.) in emergency, under
intimation to the Secretary of the administrative Ministry. In all other cases including
those of Chief Executive, tours abroad would continue to require the prior approval of
the Minister of the Administrative Ministry/ Department.

*****

10
 Chapter-3

Corporate Governance & Professionalization of Board in Central Public Sector

Enterprises (CPSEs)

3.1 Corporate Governance - Background

3.1.1 The concept of Corporate Governance has generated extensive debate during
the last few years due to the fast changing economic scenario all over the world. The
term Corporate Governance includes the policies and procedures adopted by a
corporate entity to achieve its objectives in relation to shareholders, employees,
customers and suppliers, regulatory authority and the community at large. In general
parlance, it means a code of corporate conduct in relation to all the stakeholders,
whether internal or external. Corporate Governance implies transparency of
management systems and encompasses the entire mechanics of the functioning of
the company. It provides a system by which corporate entities are directed and
controlled, besides attempting to put in place a system of checks and balances
between the shareholders, directors, auditors and the management.

3.1.2 Keeping in view the importance of Corporate Governance principles in

ensuring transparency and enhancing the trust of stakeholders and the fact that there
was a continued need to adopt and apply the good Corporate Governance practices
in respect of CPSEs where huge public funds are invested, it was decided to
continue the Guidelines on Corporate Governance for CPSEs and after due inter-
ministerial consultations, the proposal for introduction of Guidelines on Corporate
Governance for all CPSEs on mandatory basis was approved by the Government in
March, 2010.

3.1.3 The Guidelines cover issues like composition of Board of CPSEs, Audit
Committee, Remuneration Committee, Subsidiary companies, Disclosures, Code of
conduct and ethics, Risk management and reporting. The Guidelines have been
modified and improved keeping in view the experience gained during the
experimental phase of one year and includes additional provisions relating to
monitoring the compliance of Guidelines by the CPSEs and formation of
Remuneration Committee. Since, the concept of Corporate Governance is dynamic
in nature, it has also been provided that suitable modifications in these Guidelines
would be carried out from time to time to bring them in line with prevailing laws,
regulations, acts, etc.

3.1.4 The salient features of these guidelines are at Annex-8.

3.1.5 During the year 2013, DPE has completed the process of grading CPSEs on
the basis of their compliance with Guidelines on Corporate Governance for CPSEs
for the year 2012-13 and the grading report is enclosed at Annex-9. Out of 260
CPSEs, 112 have been graded as Excellent, 25 as Very Good, 14 as Good, 8 as Fair

11
and 3 CPSEs as Poor. There has been an increase of 22% in the numbers of CPSEs
falling under Excellent and Very Good categories.

3.1.6 Non official Directors are an essential part of the Boards of CPSEs. The new
Companies Act also puts emphasis on this. During the year 2013-14, proposals for
filling up 230 positions of non-official Directors on the Boards of 113 CPSEs were
considered and suitable recommendations were conveyed to the concerned
administrative Ministries/Departments.

3.2 Training & Workshops

3.2.1 DPE in collaboration with the Chartered Accountants of India (ICAI) organized
4 workshops for Capacity Building of non-official Directors of CPSEs on 28 th October,
2013 (New Delhi), 24th January, 2014 (Bangalore), 27th January, 2014 (Mumbai) and
26th February, 2014 (New Delhi). Further, International Management Institute (IMI) in
collaboration with DPE organized 2 nd Directors Conclave in Bangalore from 27 th to
29th June, 2013 and 3rd Directors Conclave at Greater Noida from 28 th to 30th
November, 2013. Around 110 non-official Directors were covered through these
programmes.

3.3 Functional Directors

3.3.1 The functional Directors are appointed by the administrative Ministry on the
recommendations of PESB and with the approval of Competent Authority. The
Government Directors are appointed in their ex-officio capacity and their selection
vests with the concerned administrative Ministries/Departments.

*****

12
 Chapter-4
Policy on Acquisition of Raw Material Overseas by CPSEs

4.1 The availability of adequate quantities of raw materials is a pre-requisite for

growth. There is also a strategic perspective as some countries have already taken
the lead in acquiring sources of raw material assets globally. Overseas investments
are currently undertaken by CPSEs either under powers delegated to their Boards or
with the approval of CCEA through the mechanism of Empowered Committee of
Secretaries (ECS). Shortcomings in the present system include delays in decision
making, lack of coordinated & inter-sectoral approach and absence of government
funding.

4.2 On the basis of recommendations of National Manufacturing Competitiveness

Council (NMCC), inter-ministerial consultations and approval of the Cabinet, DPE
has notified the Policy for acquisition of Raw Material assets abroad by CPSEs in
October, 2011.

4.3 The broad features of this Policy are as following:

 Policy is applicable to CPSEs in Agriculture, Mining, Manufacturing and
Electricity sectors having a three year record of making net profits.
 CPSEs to examine proposals, undertake due diligence and obtain approval of
Board of Directors in a transparent manner.
 Enhanced powers delegated to the Boards of Maharatna and Navratna can be
exercised only for acquisition of raw material assets abroad.
 Coordinating Committee of Secretaries (CCoS) headed by the Cabinet
Secretary to be constituted. Proposals (i) where the administrative
Ministry/CPSE requests for a coordinated view and (ii) involve Government
funds, to be put up before the CCoS.
 CCoS to facilitate quick and coordinated decision making, coordinate grant of
concessional credit to foreign enterprise/Government, recommend
Government funding and decide about the nature of the Government funding
on a case to case basis.
 The CCoS to be serviced by the DPE and separate cell to be created in DPE.
DPE authorized to hire additional personnel, accommodation and procure
equipments necessary for making this cell operational. Additional annual
budgetary outlay of Rs. 1.5 crore per annum to be provided to DPE.
 CPSE/Ministry to submit proposal to the DPE which will convene a meeting of
the CCoS. CPSE/Ministry to nominate a nodal officer.
 Recommendations of CCoS to be placed before CCEA by the DPE.

13
  Existing Empowered Committee of Secretaries (ECS) mechanisms shall
continue to function. Ministries presently not having ECS proposed to be
authorized to have appropriate ECS mechanism.
 The Ministry of External Affairs and its Missions abroad to be associated right
from the beginning of the process.
 The Government to, in due course, consider constituting a dedicated,
Sovereign Wealth Fund.

4.4 The following actions have been taken by DPE in this regard:
(i) Circulation of the approved policy to all stakeholders.
(ii) Issuance of guidelines prescribed by Ministry of External Affairs (MEA) and
its advisory to its Missions abroad after consultations with MEA.
(iii) Constitution of Coordinating Committee of Secretaries after approval of
Cabinet Secretariat.
(iv) Initiating the process of recruitment of manpower for separate cell and
release of advertisement in newspapers inviting applications and holding of
selection interviews.

*****

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 Chapter-5

MoU System in CPSEs

MoU is a mutually negotiated agreement between the management of the

CPSEs and the Government of India/Holding Company. Under this agreement, the
CPSEs undertakes to achieve the targets set in the agreement at the beginning of
the year and submits itself to evaluation on the basis of its achievements at the end
of the year.

5.2 Genesis of the MoU system in India

5.2.1 The Government of India introduced the system of MoU in the year 1986,
based on recommendations given by Arjun Sengupta Committee report (1984). The
report recommended that the CPSEs enter into agreements with their Administrative
Ministries for five years, while progress would be reviewed annually. The MoU
system was given broader thrust by the Government after the announcement of the
New Industrial Policy of 1991.In view of the above policy statement, the scope of
MoU system has been extended to cover nearly all CPSEs over a period of time and
this is given below:

Year No. of MoU’s signed Year No. of MoU’s signed

1987-88 4 2007-08 144
1991-92 72 2008-09 147
2001-02 104 2009-10 197
2002-03 100 2010-11 198
2003-04 96 2011-12 197
2004-05 99 2012-13 196
2005-06 102 2013-14 197
2006-07 113 2014-15 199

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5.2.2 NCAER study on MoU and Performance Evaluation: The Department assigned a
study to the National Council of Applied Economic Research (NCAER) in 2003 to
examine afresh the choice of criteria for performance evaluation and the allocation of
weights to the different parameters. While the performance evaluation under the earlier
system allocated 60% weight to ‘financial parameters’ and 40% weight to ‘non-financial
parameters’, the NCAER recommended equal weights (50%) to both ‘financial’ and
‘non-financial’ parameters. In this respect, it is similar to the ‘balanced score card’
approach of performance evaluation. The ‘non-financial parameters’ were further sub-
divided into ‘dynamic parameters’, ‘enterprise-specific parameters’ and ‘sector-specific
parameters’. The recommendations of the NCAER were subsequently accepted by the
Government and the new methodology for setting up performance targets came into
force since financial year 2004-05.

5.2.3 Objectives of MoU System: The specific objectives of the MoU system are to:
(i) Improve the performance of CPSEs though increased management autonomy;
(ii) Remove the haziness in goals and objectives;
(iii) Evaluate management performance through objective criteria; and
(iv) Provide incentives for better future performance.

5.2.4 Institutional Arrangements for Implementation of MoU Policy-High Power

Committee (HPC) on MoU: The High Power Committee (HPC) on MoU is a Committee
of Secretaries (COS) set up by the Government as the Apex Committee to assess the
performance of MoU signing CPSEs with reference to the commitments made by them
in the MoU and also to assess how far the Administrative Ministries/Departments have
been able to give the necessary support as committed by them in the MoU. HPC is
headed by the Cabinet Secretary and comprises of Finance Secretary, Secretary
(Expenditure), Secretary (Planning Commission), Secretary (Statistics & Programme
Implementation), Chairman, Public Enterprises Selection Board; Chief Economic
Advisor, Department of Economic Affairs; Chairman, Tariff Commission; and Secretary
(Performance Management). The HPC on MoU has been, from time to time, giving
directions in regard to the determination of the principles and parameters for evaluating
the performance of CPSEs.

5.3 Task Force on MoU

5.3.1 The Committee of Secretaries in its meeting held on 26th December, 1988
decided to constitute a Task Force for determining the parameters and weights and
also for evaluation of performance of the CPSEs. The Task Force also assists DPE
and HPC on MoU for determining the MoU format, parameters and inter se weights.
The Task Force is further divided into different groups called syndicates and each
syndicate is entrusted with the tasks relating to MoU of CPSEs of a particular sector.

16
5.3.2 In order to lend greater technical and professional expertise as well as diverse
and rich experience to Task Force on MoU for the year 2014-15, CPSEs were
categorized into 13 syndicates, which are as follows:-
1. Agriculture, Fertilizers, Chemicals & Pharma
2. Steel, Lignite, Other Minerals & Metals
3. Crude Oil, Gas and Petroleum
4. Engineering, Transport Equipment and Consumer Goods –I
5. Engineering, Transport Equipment and Consumer Goods –II
6. Engineering, Transport Equipment and Consumer Goods –III
7. Energy, Power Generation and Transmission
8. Trading & Marketing and Financial Services
9. Contract, Construction Service and Consultancies
10. Transport and Tourism-I
11. Transport and Tourism-II
12. Electronics, Telecommunications & Information Technology
13. Section 25 CPSEs

5.3.3 Linkage with PRP: MoU performance evaluation is one of the basic criteria for
Performance Related Pay (PRP). The signing of MoU by the CPSEs with their parent
Ministries/ Departments/ Holding Companies has been made mandatory for making
them eligible for performance related pay/variable pay. The MoU rating forms one of
the basis of PRP, with all the key result areas identified in the MoU. The PRP is
payable at 100% eligibility levels in case the CPSE achieves the MoU rating as
“Excellent”. In respect of “Very Good”, “Good” and “Fair” MoU ratings, the eligibility
levels for PRP would be 80 %, 60% and 40% respectively. If the MoU performance
of a CPSE is rated as ‘Poor’, it is not eligible for PRP irrespective of the profitability of
the CPSE.

5.3.4 Applicability: All CPSEs (Holding as well as Subsidiaries), without exception,

are required to sign MoUs. While the Apex/Holding companies sign MoUs with their
administrative Ministries/Departments, the Subsidiary companies sign MoUs with
their respective Apex/Holding companies on the same lines as MoU is signed
between a CPSE and Government of India.

5.3.5 Exemption from MoU: In respect of CPSEs, which are closed/not in operation,
merged, wound up, shell companies or are sick and on the verge of being closed or
merged with no revival package in sight, the administrative Ministry shall send the
proposal for exempting them from MoU with its recommendations to DPE.

17
5.3.6 Revision of Targets: Once the MoUs are signed, revision of targets is not
permissible. MoU targets are unconditional and non-provisional. However, during
performance evaluation of MoU for happenings beyond the control of CPSE, the
Task Force on MoU may consider offset and give their recommendations to DPE.
Final decision on such cases is taken by High Powered Committee (HPC) on MoU.

5.3.7 MoU Guidelines 2014-15: DPE after consideration of suggestions received

from administrative Ministries/Departments, CPSEs and recommendations of
external studies/evaluation including the Working Group chaired by Chairman of
Task Force on MOU has made significant changes in MoU Guidelines 2014-15.
CPSEs have been given greater flexibility to select parameters more suitable for their
operations. A common format has been formulated for all CPSEs except sick and
loss making CPSEs, under construction CPSEs and Section 25 CPSEs. The MoU
guidelines emphasize greater weight to project implementation and CAPEX. Salient
features of the guidelines are as follows:
MoU targets should be realistic yet growth oriented
a) Principles for Target setting:
inspirational and consistent with the proposed Annual Plan, Budget and Corporate
Plan of the CPSE and Results Framework Document (RFD) of the
Ministry/Department. It should be fixed keeping in mind the targets/goals indicated in
the Plan document or during annual plan discussions and as per allocations
approved by Ministry of Finance. Directions by statutory or regulatory bodies, as
applicable should also be factored in. Targets should be the maximum achievable
under the given and anticipated circumstances. The financial information disclosed to
potential investors in IPO/FPO documents and interest of the shareholders should
also be kept in mind.
In addition to the financial performance, quantifiable physical
b) Physical Targets:
targets which reflect productivity and efficiency of CPSEs are to be taken as
parameters by CPSEs in MoU. The guidelines emphasize CAPEX and project
implementation.
There are no mandatory non- financial parameters
c) Fixation of Targets-Non Financial:
for 2014-15. The non-financial parameters are Corporate Social Responsibility (CSR)
& Sustainability; Research & Development (R&D); Initiatives for Growth, Project
Management & Implementation; Productivity and Internal Processes; Technology,
Quality, Innovative Practices; Human Resource Management and Sector Specific
Parameters/ Enterprise Specific Parameters.
d) Group Targets: The performances of some CPSEs are inter – dependent because
their operations cut across more than one CPSE and/ or Ministries/Departments. In
such circumstances, MoU targets of the concerned CPSEs are so fixed that they are
jointly and severally responsible for their performance and for achievement of the
targets.
e) Research & Development (R&D): “Research& Development”, a ‘Non-financial
parameter” may be included for CPSEs desirous of taking up R&D projects. R&D is
18
not meant as fundamental scientific research (though it is not excluded). It should be
linked to improvements in operational efficiencies in all activities, including
manufacturing, processing, product development, packaging, marketing, and even
work processes, through innovation, adaption, and application of available and
emerging technologies and techniques.
f) Commitment and assistance from Government: Performance of Central Public Sector
Enterprises (CPSEs) is assessed with reference to the commitments made and
actual assistance given to CPSEs by Administrative Ministries/Departments. This is
to be quantified and a Report along with Performance Evaluation Score Sheet of
CPSEs is to be submitted by Administrative Ministries/Departments to DPE which will
be reviewed by HPC. Commitments/assistance expected from the Government
should be relevant and related to the fulfilment of the agreed performance targets.
The commitments/assurances in the MoU document are to be incorporated
appropriately in the Result Framework Documents (RFD) of the concerned
administrative Ministry/Department.
g) Negative Marking: There is provision for negative marking in cases of non-
compliance with guidelines of Corporate Governance and other DPE Guidelines

5.4 MoU Evaluation

5.4.1 Evaluation of MoU of the CPSE is done at the end of the year on the basis of
actual achievements vis-à-vis the MoU targets. CPSEs (Holding as well as
Subsidiaries) are required to submit performance evaluation reports on the basis of
audited data to Department of Public Enterprises and the Task Force of the
Syndicate Group, after approval of the Board of CPSE and through the administrative
Ministries/Departments within the target date of 31 st August. A description of MoUs
evaluated during the last three years is as under.

Item 2010-11 2011-12 2012-13 2013-14

Total MoUs Signed 198 197 196 197
Evaluation Report Submitted 161 175 189 + 1 * Due from 31.8. 2014

* Provisional

5.4.2 A comparison of the MoU ratings secured by the CPSEs in the last 9 years is
as under:-

Rating Number of Public Sector Enterprises under each rating over Years
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Excellent 45 49 46 55 47 73 67 76 75

V. Good 31 32 37 34 34 31 44 39 39
Good 12 15 13 15 25 20 24 33 37 + 1*
Fair 10 06 06 08 17 20 24 25 36
Poor 01 00 00 00 01 01 02 02 02
19
Total 99 102 102 112 124 145 161 175 189 + 1*
* Provisional

5.5 Determination of Excellence Awards under MoU system

5.5.1 CPSEs are eligible for non-monetary incentives in the form of MoU Excellence
Awards. The total number of MoU Excellence Awards are 12 (one from each of the
10 Syndicate groups, one from the best listed CPSEs, one from amongst the sick
and loss making enterprises on way to turnaround). All other ‘Excellent’ performing
CPSEs get MoU Excellence certificates.

5.5.2 The following basic principles for selection of CPSEs for MoU Excellence
Awards and Certificates from amongst the Syndicate groups are followed:
(i) The profit of the CPSE in the year should be higher compared to the previous
year.
(ii) It should not be a loss-making enterprise.
(iii) The composite score of the CPSE should not be more than 1.5 (Excellent
rating).

5.5.3 The Award is given to the CPSE which has shown exceptional performance on
MoU and has the lowest MoU composite score in the respective Syndicate Group. In
case two or more CPSEs score the same MoU composite score in a Syndicate
Group, the CPSE recording the highest growth rate of net profit over the previous
year is eligible for the excellence award.

5.5.4 For the category of Excellence Awards for Listed CPSEs, the condition is that
the percentage growth in the market capitalization exceeds the percentage growth in
sensex of the Bombay Stock Exchange. The listed CPSE with the highest
percentage growth in market capitalization is eligible for this award.

5.5.5 For Excellence Awards for Sick and Loss making CPSEs on way to
turnaround, the conditions are that the CPSEs should have earned profit before tax
for the year of the MoU under consideration as well as during the immediately
preceding financial year, to ensure that the turnaround is on firm ground. The CPSE
having the lowest composite score is eligible for the excellence award.
*****

20
 Chapter – 6
Permanent Machinery of Arbitration (PMA)

6.1 Permanent Machinery of Arbitration (PMA) has been set up in Department of

Public Enterprises for resolving commercial disputes, between CPSEs inter-se as
well as between a CPSE and a Central Government Department/Ministry/Banks/ Port
Trusts (except tax matters and Ministry of Railways) in 1989 in compliance of
directions of Hon’ble Apex Court in the case of ONGC vs. Collector of Central Excise,
Mumbai vide OM dated 29.3.1989 and 30.6.1993.

6.2 PMA guidelines are revised from time-to-time and recently they were revised
on 12.3.2014. The disputes are required to be referred to Department of Public
Enterprises for its reference to the Arbitrator of PMA. Secretary, Department of Public
Enterprises on being satisfied with prima facie existence of a dispute, refers the
dispute to the Arbitrator of the PMA for Arbitration. The Arbitration Act, 1996 is not
applicable in these cases. No outside lawyer is allowed to appear on behalf of either
party for presenting/defending the cases. But the parties can take help of their own
full time law officers.

6.3 The Arbitrator issues notices to parties concerned for submission of facts of
the case and their claims and counter claims. The parties argue their case before
him. Based on written records and oral evidence, the Arbitrator publishes an award.
An appeal against the award of the Arbitrator can be made to the Secretary, Ministry
of Law, for setting aside or revision of the award. The decision of Secretary, Ministry
of Law is final and binding on the parties and no appeal can be made in any Court of
Law/Tribunal against the decision.

6.4 The PMA is designed to be self supporting and the disputants are required to
share equally the Arbitration Fee (payments are made through DDO, Department of
Public Enterprises) worked out by the Arbitrator based on the formula given in the
guidelines. During the year 2013-14, an amount of Rs.196.08 lakh was collected from
the parties as arbitration fee.

6.5 Since inception and till the end of 31.3.2014, 400 cases have been referred to
the Arbitrator of PMA, out of which Awards in 346 cases have been published while
20 cases are sine die.

6.6 There were 74 old cases at the beginning of year 2013-14, and during the year
8 new cases were referred making a total of 82 cases. During the year, 51 cases
were decided and one case adjourned sine die thus leaving a balance of 30 cases.

6.7 From time-to-time, the Department of Public Enterprises monitors the

implementation of the Award of the Arbitrator.

*****

21
 Chapter – 7
Wage Policy and Manpower Rationalization

7.1 The Department of Public Enterprises (DPE) functions as nodal Department

inter-alia, in respect of policy relating to pay revision of executives holding posts at
the Board Level as well as below the Board level and non-unionized supervisors; and
wage settlement of workmen, in CPSEs. The Department renders advice to the
Administrative Ministries/ Departments and the CPSEs in matters relating to revision
in the scales of pay of the executives and the wage policy of workmen. The CPSEs
are largely following Industrial Dearness Allowance (IDA) pattern scales of pay. In
some cases, Central Dearness Allowance (CDA) pattern scales of pay is followed.
DPE also issues quarterly DA orders in respect of IDA employees. The DA orders
for CDA employees are issued on six monthly periods.

7.2 Industrial Dearness Allowance (IDA)

7.2.1 Government policy relating to pay scales and pay pattern is that all employees
of the CPSEs should be on IDA pattern and related scales of pay. Instructions were
issued by the DPE in July, 1981 and July, 1984 to all the administrative
Ministries/Departments that as and when a new CPSE is created or established, IDA
pattern and related scales of pay should be adopted ab-initio. In line with DPE O.M.
dated 12.06.1990, DPE vide its O.M. dated 10.08.2009 reiterated and emphasized
that ‘appointments’ including ‘promotion’ on or after 01.01.1989 in CDA scales of pay
have to be in IDA scales of pay. There were 277 CPSEs (excluding Banks, Insurance
Companies and newly set up CPSEs), as on 31.03.2013 under the administrative
control of the Central Government. They employed approximately 14.04 lakh
workmen, clerical staff and executives. Majority of the workmen and executives are
on IDA pattern and related scales of pay and the few remaining employees are on
CDA pay pattern.

7.3 Second Pay Revision Committee

7.3.1 On the recommendations of the 2 nd Pay Revision Committee (PRC) headed by
Justice M.J. Rao (retired judge of the Supreme Court) and also on the
recommendations of a Committee of Ministers, headed by the then Home Minister
(Chidambaram Committee), the Government issued orders vide DPE OM dated
26.11.2008, 09.02.2009 and 02.04.2009 regarding pay revision w.e.f. 01.01.2007 in
respect of executives and non-unionized Supervisors of CPSEs following IDA pattern
of pay scales. The salient features of 2007 pay revision orders are as follows:
(i) Pay scales ranging from Rs. 12,600-32,500 for E-0 grade and to Rs. 80,000-
1,25000 for Chief Executives of schedule ‘A’ CPSEs.
(ii) A uniform fitment benefit @ 30% on basic pay plus DA @ 78.2% as on
01.01.2007.
(iii) Rate of increment @ 3% of basic pay.

22
 (iv) Perks and allowances upto the maximum of 50% of basic pay, with provision
of ‘Cafeteria Approach’.
(v) Performance Related Pay (PRP) ranging from 40% to 200% of the basic pay.
(vi) Superannuation benefits upto 30% of basic pay +DA
(vii) Ceiling of gratuity in respect of executives and non-unionized supervisors
raised to Rs. 10.00 Lakh w.e.f. 01.01.2007.
(viii) Implementation of Pay Revision linked to affordability of the CPSE. The
CPSEs concerned have to finance pay revision from their own resources and
no budgetary support will be provided.
(ix) An Anomalies Committee consisting of Secretaries of Department of Public
Enterprises, Department of Expenditure and Department of Personnel &
Training constituted to look into further specific issues/ problems that may
arise in implementation of Government’s orders on the recommendations of
2nd PRC.
(x) Enhanced allowances could be effective from 26.11.2008, instead of from the
date of issue of Presidential Directive, provided the Presidential Directive is
issued within one month of 02.04.2009.
(xi) These benefits to be extended to all CPSEs. Benefits as given in these O.Ms
to be viewed as a total package.

7.4 Recommendations of Anomalies Committee

7.4.1 In terms of the provisions of DPE O.M. dated 26.11.2008, an Anomalies
Committee was constituted. The Anomalies Committee has considered certain
issues and based on its recommendations, DPE had issued orders on issues such as
(i) Pay etc. of Government officers on deputation to CPSEs, (ii) Self Lease of
residential accommodation, (iii) Medical Expenditure, (iv) Encashment of Leave, (v)
Benefit of bunching of increment, (vi) Procedure of pay fixation in some past cases of
Board level executives, (vii) Protection of last drawn pay in a particular case of Board
level executives, (viii) NPA not to be considered as pay for the purpose of calculating
other benefits, (ix) no other allowance or perks to be kept outside the 50% ceiling
except the ‘4’ allowances that have been provided in DPE guidelines and (x) ‘under
recoveries’ not to be included in PBT for the purpose of calculating PRP.

7.5 Wage Revision for Workmen under IDA pattern

7.5.1 DPE vide O.M. dated 9.11.2006 & 01.05.2008 and 13.06.2013 issued policy
guidelines for the 7th Round of Wage Negotiations (which, on a general basis,
became effective from 01.01.2007 and 01.01.2012, respectively) with the unionized
workmen of CPSEs. The guidelines are broadly similar to the earlier policy on the
Sixth Round of Wage Negotiations. The guidelines also provide that administrative
Ministries/ Departments may decide on the periodicity of wage settlement to be
below 10 years but not less than 5 years, with the approval of their Minister.

23
7.6 Pay revision of employees under CDA Pattern in CPSEs
7.6.1 Pay scales on CDA pattern are applicable to some of the clerical staff,
unionized cadres and executives of the 69 CPSEs who were on the rolls of these
CPSEs as on 1.1.1986 and upto 31.12.1988 and were in receipt of CDA pattern pay
scales during that time. A High Power Pay Committee (HPPC) was appointed by the
Government, in pursuance of the Supreme Court directions dated 12.3.1986, which
submitted its Report to the Government on 24.11.1988. Its recommendations were
implemented in these CPSEs. In pursuance of the Supreme Court direction dated
3.5.1990 read with the subsequent directions dated 28.8.1991, IDA pattern and
related scales of pay were introduced in these CPSEs with effect from 1.1.1989. Vide
DPE O.M. dated 10.08.2009, it was clarified that ‘Appointment’ includes selection,
promotion and deputation. Therefore, all appointments including appointment on
promotion should be under IDA pattern of pay scales as per the direction of Hon’ble
Supreme Court.

7.6.2 DPE vide O.M. dated 14.10.2008 and 20.01.2009 has revised pay scales and
allowances of the employees of CPSEs following CDA pattern w.e.f. 01.01.2006. The
benefit of pay revision was allowed to the employees of those CPSEs that are not
loss making and are in a position to absorb the expenditure on account of pay
revision from their own resources without any budgetary support from the
Government.

7.7 Highlights & Important policy guidelines issued during the years 2012-13
and 2013-14
(i) DPE vide O.M. dated 14.12.2012 has issued guidelines on finalization of terms
& conditions including pay fixation in respect of Board level executives of CPSEs. It
has been decided that henceforth the respective administrative Ministry/Department
may be allowed to finalize the pay fixation and terms & conditions of appointment of
Board level executives of CPSEs under their administrative control, with the
concurrence of their Integrated Finance Wing (IFW).
(ii) DPE vide O.M. dated 21.01.2013 has issued guidelines on purchase, use,
entitlement and other instructions regarding staff car in CPSEs. These have been
partially modified vide DPE OM dated 4.11.2013.
(iii) The policy for 7th Round (2nd part) of Wage negotiations for unionized workers
in CPSEs w.e.f. 01.01.2012 has been issued vide DPE O.M. dated 13.06.2013.
(iv) A workshop on Pension and Post Retirement Benefit Scheme in CPSEs was
held on 14.08.2013.
(v) DPE vide O.M. dated 18.09.2013 has clarified that interest on idle cash/bank
balances may be deducted from profit before tax (PBT) and PRP may be distributed
based on profit accruing only from the core business activities of CPSEs.
*****
24
 Chapter-8
Categorization of CPSEs

8.1 The Public Sector Enterprises are categorized into four schedules namely ‘A’,
‘B’, ‘C’ & ‘D’. The pay scales of chief executives and full time functional Directors of
CPSEs are linked with the schedule of the concerned enterprise. Normally, the Chief
Executive of the enterprise is given the scale of pay attached to the schedule of the
company while the functional Directors are allowed the scale of pay attached to the
next below schedule. At times, the posts of Chief Executives or functional Directors
are upgraded on personal basis so that exceptionally capable executives are
retained in the CPSEs where they had rendered meritorious service. Such
arrangements also help in attracting talent to sick or high-tech enterprises.

8.2 The initial categorization of CPSEs in the mid-sixties was made on the basis of
their importance to the economy and complexities of their problems. Over the years,
the Department of Public Enterprises has evolved norms for the purpose of
categorization/re-categorization of CPSEs. Categorization is based on criteria such
as quantitative factors like investment, capital employed, net sales, profit before tax,
number of employees and units, capacity addition, revenue per employee,
sales/capital employed, capacity utilization, value added per employee and
qualitative factors such as national importance, complexities of problems being faced
by the company, level of technology, prospects for expansion and diversification of
activities and competition from other sectors, etc. The other factors, wherever
available, relate to share price, MOU ratings, Maharatna/Navratna/Miniratna status
and ISO certification. In addition, the factor relating to the critical/strategic importance
of the corporation is also taken into account. The present procedure involves
consideration of the proposals in the administrative Ministry concerned and the
Department of Public Enterprises which consults the Public Enterprises Selection
Board. At present i.e. as on 31.3.2013, there are 64 Schedule ‘A’, 69 Schedule ‘B’,
47 Schedule ‘C’, 4 Schedule ‘D’ and 93 uncategorized CPSEs. The schedule-wise
list of CPSEs is given in Annex-10.

8.3 During the year 2013-14, Mangalore Refinery & Petrochemicals Ltd. (MRPL)
was upgraded from Schedule ‘B’ to Schedule ‘A’; Bharat Petro Resources Limited
(BPRL) was upgraded from Schedule ‘C’ to Schedule ‘B’; Biotechnology Industry
Research Assistance Council (BIRAC) was initially categorized as a Schedule ‘B’
CPSE; and MOIL Limited was upgraded from Schedule ‘B’ to Schedule ‘A’

8.4 During the year 2013-14, 1 post of Functional Director, i.e. Director (Projects)
was created on the Board of BBJ Construction Co. Limited; 1 post of functional
Director on the Board of NBCC Limited; and 1 post of functional Director, i.e. Director
(Business Development) was created on the Board of ONGC Videsh Limited.
*****
25
 Chapter-9

Board for Reconstruction of Public Sector Enterprises (BRPSE)

9.1 The Government constituted Board for Reconstruction of Public Sector

Enterprises (BRPSE) vide Resolution dated 6th December, 2004 as an advisory body
to address the task of strengthening, modernization, reviving, and restructuring of
Central Public Sector Enterprises (CPSEs) and advise the Government on strategies,
measures and schemes related to them.

9.2 The Board consists of a Chairman in the rank of Minister of State, three non-
official Members and three official Members. In addition, Chairman, Public
Enterprises Selection Board (PESB); Chairman, Standing Conference of Public
Enterprises (SCOPE) and Chairman, Oil and Natural Gas Corporation Ltd. (ONGC)
are permanent invitees, while Secretary of the concerned administrative
Ministry/Department is a special invitee to the meetings. There is also an exclusive
Secretary to BRPSE in the rank of Additional Secretary to the Government of India.

9.3 Terms of reference of BRPSE are as follows:-

a) To advise the Government on ways and means for strengthening public sector
enterprises in general and making them more autonomous and professional;
b) To consider restructuring – financial, organizational and business (including
diversification, joint ventures, seeking strategic partners, merger and
acquisition) – of CPSEs and suggest ways and means for funding such
schemes;
c) To examine the proposals of the administrative Ministries for revival/
restructuring of sick/loss making CPSEs for their turnaround;
d) To advise the Government on disinvestments/closure/sale in full or part, in
respect of chronically sick/loss making companies, which cannot be revived. In
respect of such unviable companies the Board would also advise the
Government about sources of fund including sale of surplus assets of the
enterprise for the payment of all legitimate dues and compensation to workers
and other costs of closure;
e) To monitor incipient sickness in CPSEs; and
f) To advise the Government on such other matters as may be assigned to it.

9.4.1 Committee of Secretaries (CoS) in its meeting held on 22.2.2013 has

mandated BRPSE to examine the proposal of enhancement of superannuation form
58 years to 60 years in sick CPSEs and to give its recommendations to the
concerned Ministry/Department.

9.4.2 Details of the meetings held by BRPSE during the year i.e. 2013-14 are at
Annex-11. It recommended revival package to ITI Ltd., HMT Bearings Ltd.,
26
Fertilizers and Chemicals Travancore Ltd., Brahmaputra Valley Fertilizer Corporation
Limited and closure of STCL Ltd., Hindustan Photo Films Manufacturing Co. Ltd. and
Biecco Lawrie Ltd. The Board during this period reviewed the status of
implementation of revival package sanctioned by Government to 17 CPSEs and also
the status of its recommendations in respect of 2 CPSEs. In addition, the board also
reviewed, on suo moto, the performance and outlook of two incipient sick CPSEs
namely (i) Mahanagar Telecom Nigam Ltd. and (ii) Bharat Sanchar Nigam Ltd.

9.4.3 Besides, BRPSE has recommended extension of superannuation age from 58

to 60 years in National Projects Construction Corporation Ltd.

9.5 Since the inception of BRPSE and till March, 2014, the Board has given its
recommendations in respect of 64 PSEs. The recommendations of BRPSE in respect
of the 64 PSEs (Annex-12) fall under the following broad categories:

S. No. Category No. of PSEs

1 Revival through restructuring package 45
2 Revival through take over by State Govt./ joint 8
venture with PSEs/ Disinvestment
3 Revival through merger/takeover 5
4 Closure 6
Total 64

9.6 BRPSE, besides giving recommendations on sick PSEs, has also

recommended scheme for attracting Top Managerial Talent to sick PSEs which has
been approved. The Board also recommended measures to the Government for
strengthening CPSEs (particularly sick CPSEs), which includes enhancement of
superannuation age of Board level and below Board level appointees, Pay Revision,
revision of VRS/VSS Schemes, incentivizing employees, and relaxation in
recruitment rules for Board level appointees in sick CPSEs.

9.7 Out of the 64 cases recommended, Government has approved proposals for
revival of 45 cases of CPSEs and closure/winding up of 3 CPSEs. In case of 3 sick
CPSEs, namely, Bharat Coking Coal Ltd., Eastern Coal Fields Ltd. and Hindustan
Fluorocarbons Ltd., their Holding CPSEs namely Coal India Ltd. and Hindustan
Organic Chemicals Ltd. are implementing the revival plan. The recommendations of
BRPSE in respect of the remaining CPSEs are being processed by the administrative
ministries concerned (Annex-13).

9.8 Out of the 48 CPSEs approved for revival, till March, 2014, 19 sick CPSEs
have been declared turnaround as they have posted profits consecutively for 3 or
more years after the assistance by the Government.

27
9.9 BRPSE conducted “BRPSE Turnaround Award: 2013” function on
31.10.2013 to felicitate 4 turnaround sick CPSEs viz. National Projects Construction
Corporation Ltd., National Film Development Corporation Ltd., SAIL Refractory Unit
(formerly Bharat Refractories Ltd.) and Bharat Coking Coal Ltd.

*****

28
 Chapter – 10
Counselling, Retraining and Redeployment (CRR)

10.1 In the context of restructuring of Central Public Sector Enterprises (CPSEs),

rationalization of manpower has become a necessity. The policy of the Government
has been to implement reforms with a humane face and provide adequate safety net
for the workers adversely affected due to right sizing. Considering the need to have
safety net, Government had established the National Renewal Fund (NRF) in
February, 1992 to cover the expenses of VRS and to provide retraining to the
workers in the organized sector. The retraining activity was administered by
Department of Industrial Policy and Promotion. After the abolition of NRF in
February, 2000, the Scheme for Counseling, Retraining and Redeployment (CRR) of
Rationalized Employees of CPSEs is being implemented by Department of Public
Enterprises since 2001-02. CRR Scheme was modified in November, 2007 in order
to widen its scope and coverage. One dependent of VRS optee is also eligible in
case the VRS optee himself/herself is not interested.

10.2 The Scheme for Counselling, Retraining and Redeployment (CRR Scheme)
inter-alia aims to:
- reorient rationalized employees through short duration training programmes.
- equip them for new vocations.
- engage them in income generating self-employment.
- help them rejoin the productive process.

10.3 The main elements of the CRR Scheme are Counselling, Retraining and
Redeployment. Counselling helps the rationalized employees to cope with the trauma
of leaving the organization, to properly manage their funds including VRS
compensation, to get motivated for facing challenges and to re-join the productive
process. Retraining strengthens their skill/expertise. Selected training institutes
impart need-based training in modules of 30 days / 45 days / 60 days. The faculty
support is both internal and external. The approach is to provide classroom lectures
as well as field experience. In the process, trainees interact with experts from various
fields and are helped in preparation/finalization of project reports. The retraining
should lead to Redeployment mostly through self-employment. In the present
scheme, the objective is to maximize the rate of self-employment. The Nodal
Agencies, therefore, provide need-based support, linkage with credit institutions and
continuously follow up with the retrained personnel.

10.4 The nodal training agencies are required to counsel VRS optees, impart
training and reorientation, develop curriculum /materials, prepare feasibility report,
market survey, post-training follow up, interface with credit institutions, support in self
employment and regular liaison with CPSEs etc.

29
10.5 CPSEs are the key to the success of the Scheme. They are expected to
extend all possible support for the welfare of the separated employees by clearing
their compensations/dues before release. Long association with employees puts
CPSEs in a better position to identify their retraining needs.

10.6 In the year 2013-14, plan funds to the tune of Rs. 7.00 crore as BE and
Rs.5.40 crore as RE were allocated for implementation of CRR Scheme. During the
year, 8 nodal agencies were operational with 27 Employees Assistance Centres
(EACs) located all over the country. Year wise number of persons trained under the
Scheme, including the year 2013-14 is shown as under:-

Year No. of persons trained

2001-02 8064
2002-03 12066
2003-04 12134
2004-05 28003
2005-06 32158
2006-07 34398
2007-08 9728
2008-09 9772
2009-10 7400
2010-11 9265
2011-12 9400
2012-13 7506
2013-14 3230
Total 1,83,124

10.7 During 2013-14, the National Institute for Entrepreneurship & Small Business
Development (NIESBUD), an autonomous body under the Ministry of Micro, Small &
Medium Enterprises, submitted its report on evaluation of the performance of nodal
agencies as Third Party Assessment Agency (TPAA) and another report on
evaluation of the CRR Scheme. The findings and recommendations on evaluation of
the CRR Scheme have been circulated to the nodal agencies, administrative
Ministries/Departments concerned and CPSEs for compliance.

10.8 A list of operating nodal agencies (2013-14) is given at Annex-14.

*****

30
 Chapter-11

Voluntary Retirement Scheme (VRS)

11.1 As a result of the restructuring in some Central Public Sector Enterprises

(CPSEs), Government announced the Voluntary Retirement Scheme (VRS) in
October, 1988. A comprehensive package was later notified by the Department of
Public Enterprises (Government of India) in May, 2000. In view of the difficulties
faced by some CPSEs where the wage revision of 1992 or 1997 (as the case may
be) could not be made effective, the VRS was further liberalized through subsequent
notification of November, 2001. This notification, inter-alia, provides for 100%
additional compensation for the employees where wage revision of 1992 could not be
made effective. Similarly, 50% additional compensation was allowed for employees
where wage revision of 1997 could not be made effective. The ex-gratia payment
under VRS to employees following CDA pattern at 1986 scales of pay has been also
enhanced by 50% w.e.f. 26.10.2004. These increases in VRS compensation are to
be computed based on the existing pay of employees.

11.2 VRS in CPSEs that can support the scheme on their own
11.2.1 Enterprises, which are financially sound and can sustain VRS on their own,
can frame their own schemes of VRS and make it attractive enough for employees to
opt for it. They may offer as compensation upto 60 days salary (only Basic Pay + DA)
for every completed year of service. Such compensation will, however, not exceed
the salary for the balance period of the service left.

11.3 VRS in marginally profit or loss Making / sick / unviable CPSEs

11.3.1 Marginally profit /loss making CPSEs as well as sick and unviable units may
adopt either of the following models:
Gujarat Model, under which the compensation is computed by allowing 35 days
salary for every completed year of service and 25 days for each year of the balance
service left until superannuation subject to the condition that compensation shall not
exceed the sum of salary for the balance period left for superannuation.
Department of Heavy Industry (DHI) model, under which ex-gratia payment made is
equivalent to 45 days emoluments (Pay + DA) for each completed year of service or
the total emoluments for the balance period of service, whichever is less. The
employees who have completed not less than 30 years of service will be eligible for a
maximum of 60 (sixty) months’ salary/wage as compensation and this will be subject
to the amount not exceeding the salary/wage for the balance period of service left.

*****

31
 Chapter-12

Executive Development Programmes

12.1 The Central Public Sector Enterprises (CPSEs) design their own human
resources development programmes to upgrade the skills and knowledge of middle
and senior level executives by giving them training in various fields of management
through their own management institutes or outsourcing the services of premier
management training institutions in India. Department of Public Enterprises (DPE) is
an ex-officio member of the Executive Board of the Standing Conference of Public
Enterprises (SCOPE), New Delhi. Joint Secretary, DPE is member on the Board of
Governors of the Institute of Public Enterprises (IPE), Hyderabad.

12.2 India is a founder member of International Center for Promotion of Enterprises

(ICPE) located at Ljubljana, Slovenia. It was established as an inter-governmental
organization of developing countries for improving the performance of their public
enterprises as a strategic instrument of economic and social development. India,
represented through Secretary, DPE, is the President of ICPE Council at present.
ICPE pursues its goals by carrying out research, education, training, consultancy
work and disseminating information through documentation and publishing activities
directed towards bridging the gap between theory and practice on a wide range of
issues pertaining to corporate governance, management and other related fields.
India has benefited in the past from long-term and short-term courses, training
programmes, and Seminars/Workshops, Conferences organized by ICPE in
collaboration with DPE for executives of Public Sector Enterprises of India.

12.3 At the initiative of DPE, the one year International MBA course for the year
2013-14 was re-started after a gap of two years in October, 2013 at ICPE. Nine
senior/ middle level executives from Indian CPSEs are attending the programme.

12.4 DPE has been instrumental in getting ICPE forge linkages with premier
academic/ research institutes in India. DPE facilitated the signing of Memorandum of
Understanding between ICPE and three management / training institutes viz Indian
Institute of Public Administration (IIPA), New Delhi; International Management
Institute (IMI), New Delhi and the Administrative Staff College of India (ASCI),
Hyderabad which would help in academic/ research collaboration amongst these
institutes to help in professional enrichment and capacity building of public sector
executives.

*****

32
 Chapter-13

Corporate Social Responsibility (CSR) and Sustainability

13.1 The Department of Public Enterprises, Ministry of Heavy Industries and Public
Enterprises had issued guidelines on ‘CSR and Sustainability’ for the Central Public
Sector Enterprises (CPSEs) on 31 st December 2012, which were effective from 1 st
April 2013. These guidelines were formulated after extensive consultations with all
key stakeholders and hence were widely appreciated.

13.2 DPE organized a number of seminars and workshops across the country to
sensitize senior public sector executives dealing with CSR on implementation of CSR
activities/ projects by the CPSEs. More than 400 CPSE executives participated in
these seminars / workshops and benefitted from the deliberations. DPE also
propagated its guidelines on CSR and Sustainability and made presentations at
National and International conferences/ seminars organized on CSR.

13.3 However, with the notification of Companies Act 2013 and the CRS Rules
framed thereunder by the Ministry of Corporate Affairs and issued on 27.2.2014, DPE
has initiated the process of revising its guidelines to bring them in alignment with the
new Rules on the subject.

*****

33
 Chapter-14
Compliance Report by CPSEs

14.1 The Department Related Parliament Standing Committee on Industry in its

216th Report had recommended that DPE should play a meaningful and effective
role in getting the policies and guidelines implemented by the PSEs. In compliance
thereof, the Department of Public Enterprises vide its OM dated 29.07.2010 issued
the guidelines regarding submission of Annual Compliance Reports by all CPSEs
and requested them to furnish the Annual Compliance Reports within 30 days from
the close of the preceding financial year to their respective Administrative
Ministry/Department. All Administrative Ministries / Departments were requested to
furnish the consolidated Compliance Report in this regard to DPE by 30th June of
every year.

14.2 As a result, reports have been received from 183 CPSEs, out of 220 CPSEs
till date. The names of CPSEs which have not furnished the ACR for the year 2011-
12 are listed at Annex-15.

*****

34
 Chapter-15

Official Language Policy

15.1 The Hindi Section is primarily responsible for implementation of various

provisions of the Official Language Act, 1963 and the rules framed there under. Hindi
section is also responsible for translation of documents required to be issued under
Section 3(3) of the Official Language Act 1963. As more than 80% of the staff of this
Department knows Hindi, the Department has been notified under rule 10(4) of the
Official Language Rules, 1976.

15.2 All notifications, resolutions, notices, circulars, papers laid on the Table of the
house of Parliament etc. have been issued bilingually during the year 2013-14.
Efforts were also made to promote original correspondence in Hindi. The Official
Language Implementation Committee of DPE continues to function under the
Chairmanship of the Joint Secretary.

15.3 With a view to create consciousness and accelerating the use of Hindi as
Official Language, Hindi Pakhwada, was organized by the Department from 16 th
September, 2013 to 30th September, 2013. During the Pakhwada, three competitions
namely, Hindi Essay writing, Hindi shrutlekh and Hindi Noting/Drafting & Bhasha
Gyan were organized for the officers and staff. Cash prizes and certificates were
distributed to the winners by the Secretary, Department of Public Enterprises.

15.4 The Department presents the Annual “Public Enterprises Survey” on the
working of Central Public Sector Enterprises in the Parliament every year. This is a
voluminous and comprehensive document brought out by the Department
simultaneously in Hindi and English.
*****

35
 Chapter – 16

Welfare of Women

16.1 The principle of gender equality is enshrined in the Indian Constitution in its
Preamble, Fundamental Rights, Fundamental Duties and Directive Principles. The
Constitution not only grants equality to women but also empowers the State to adopt
measures of positive discrimination in favour of women. Within the framework of a
democratic polity, our laws, development policies, plans and programmes have
aimed at advancement of women in different spheres.

16.2 The Department has also set up a complaint committee under the
chairmanship of a woman Officer, to ensure fair, safe and healthy environment at
work place for women. The guidelines laid down by the Supreme Court relating to
sexual harassment have been brought to the notice of all those working in this
Department. Department of Public Enterprises vide its O.M. dated 29th May, 1998,
has already issued detailed guidelines and norms to the Chief Executives of CPSEs
for observance and prevention of sexual harassment of working women.

16.3 The Department has a total sanctioned strength of 122. There are 76 officers/
staff, in position, including 12 Women employees. The Department has made all
possible efforts to create a healthy and congenial atmosphere so that women
employees can perform duties with honour, dignity and without fear.

*****

36
 Chapter-17

Statement of Plan Fund Expenditure

Department of Public Enterprises

Demand No. 52
2013-14
Scheme (Rs. in thousand)
RE Total Expenditure
2013-14 2013-14
PLAN
Information Technology 5500 5484
North Eastern Area
Grant-in-aid 8200 0
Counselling, Retraining and Re-
deployment, setting up of new
Centres/addition of Nodal Agencies
etc.
Grant-in-Aid 54000 47287
Research, Development and
Consultancy on Generic issues
related to Central Public Sector
Enterprises and State Level Public
Enterprises .
Publication 2320 3142
Other Administrative Expense 500 243
Professional Services 2080 2185
Grant-in-Aid 1900 1209
Skill Development Training
Programmes of Executives of State
Level Enterprises (SLPEs)
Grant-in-aid 8000 4639
Total 82500 64189

37
 Chapter-18

Result Framework Document

18.1 The Results-Framework Document (RFD) is a record of understanding

between a Minister representing the people’s mandate, and the Secretary of a
Department responsible for implementing this mandate. The Prime Minister had
approved the outline of “Performance Monitoring and Evaluation System (PMES)” for
Government Ministries/Departments. The High Power Committee (HPC) on
Government Performance, chaired by Cabinet Secretary, in its meeting held on
3.3.2011, had approved the inclusion of the departmental RFD, corresponding
achievements and the composite score in the Annual Reports of the Department.

18.2 The RFD provides a summary of the most important results that a
Ministry/Department expects to achieve during the financial year. This document
contains not only the agreed objectives, policies, programs and projects but also
success indicators and the targets to measure progress in implementing them.

18.3 The Department of Public Enterprises (DPE) has initiated RFD exercise since
2009-2010. DPE prepared its 4th RFD for the year 2012-13. Altogether 11 (eleven)
department specific objectives were included in the RFD 2012-13 and 4 (four) more
mandatory objectives were incorporated in the RFD on the advice of Performance
Management Division (PMD). As this Department is the nodal agency for CPSEs, the
RFD objectives/targets were designed to bring in overall efficiency in monitoring,
facilitating and assisting CPSEs. The objectives of RFD 2012-13 of DPE broadly
cover the following areas:
i) Corporate Governance in CPSEs.
ii) Professionalization of management at all levels.
iii) Creation of Board level posts on the Boards of CPSE.
iv) Improving efficiency of MoU System.
v) Counseling, Retraining and Redeployment Scheme (CRR) for separated
employees of CPSEs.
vi) Implementation of CSR Policy.
vii) Public Enterprise Survey.
vii) Settlement of commercial disputes between CPSEs through Permanent
Machinery of Arbitration.

18.4 DPE has achieved excellent grading in RFD 2012-13. High Power Committee
on Government Performance of Performance Management Division, Cabinet
Secretariat has evaluated the overall performance of DPE based on its RFD 2012-13
results and awarded a composite score of 98.47%.

38
18.5 The detailed objectives contained in RFD 2012-13, their corresponding
achievements and the composite score are given in Annex-16.

*****

39
 Chapter-19

Reservation in services for Scheduled Castes (SCs), Scheduled Tribes (STs),

Other Backward Castes (OBCs) and others, in the CPSEs

19.1 The Personnel and Recruitment Policies in respect of appointments against

below Board level posts are formulated by the management of respective CPSEs.
However, on matters of general importance, policy guidelines are issued by the
Government of India to the enterprises which are to be kept in view by the latter while
framing their individual corporate policies. Furthermore, formal Presidential Directives
are issued to CPSEs by the concerned administrative Ministries to ensure
reservation in regard to employment for Scheduled Castes, Scheduled Tribes and
Other Backward Classes (OBCs), on similar lines as applicable in the Central
Government Ministries/Departments.

19.2 A comprehensive Presidential Directive incorporating all important instructions

on reservation for SCs and STs was issued by DPE to all the administrative
Ministries/Departments concerned on 25th April, 1991 for formal issuance of the
same to CPSEs. Necessary changes and modifications are also circulated to CPSEs
through their administrative Ministries/ Departments for information and compliance.

19.3 Subsequently, based on the recommendation of the Second Backward

Classes Commission (Mandal Commission) and in accordance with the Supreme
Court Judgement in the Indira Sawhney case, instructions were issued in providing
reservation of 27% of vacancies in favour of Other Backward Classes (OBCs). The
Department of Personnel & Training (DoPT) which formulates the policy in respect of
reservation in services, has been issuing instructions from time to time on various
aspects of reservation in favour of OBCs. Reservation for OBCs was made effective
w.e.f. 8.9.1993. Department of Public Enterprises (DPE) has been extending these
instructions to CPSEs through their administrative Ministries for compliance. A
comprehensive Presidential Directive incorporating all instructions was forwarded by
the Department of Public Enterprises to all administrative Ministries vide DPE’s OM
dated 27th July, 1995 for formal issuance to the CPSEs under their control.

19.4 DoPT instructions on allocation of a sub-quota of 4.5% for minorities within the
27% reservation for OBCs have been also extended vide DPE O.M. dated 2nd
January, 2012 to the administrative Ministries/Departments (concerned with CPSEs)
for implementation in CPSEs under their control.

19.5 The present quota for providing reservation for candidates belonging to
Scheduled Castes, Scheduled Tribes and OBCs as well as other categories of
persons entitled to reservation of vacancies is shown below:

40
 Quota for Reservation

Category Group 'A' & 'B' Group 'C' Group 'D'

Scheduled Castes 15% 15% 15%

Scheduled Tribes 7.5% 7.5% 7.5%

Other Backward Classes 27% 27% 27%

(including sub-quota of 4.5% for

minorities)

Physically Handicapped Persons 3% 3% 3%

Ex-servicemen & Dependents of those – 14.5% 24.5%

killed in action

Group ‘A’: Managerial/Executive Level Group ‘B’: Supervisory Level

Group ‘C’: Workmen/Clerical Level Group ‘D’: Semi-skilled/Unskilled

19.6 The representation of SCs / STs / OBC / Minorities in CPSEs as on 31.3.2013

is shown below:-

19.7 The need to ensure timely filling up of reserved posts and the backlog has
been stressed through various instructions issued from time to time. All
administrative Ministries/Departments have been requested to advise the CPSEs
under their administrative control to take effective steps to fill up the unfilled reserved
posts in Direct Recruitment as well as in Promotion in accordance with the existing
instructions. Further, the DoPT has issued necessary instructions from time to time to

41
launch a Special Recruitment Drive (s) to fill up backlog of reserved vacancies for
SCs, STs & OBCs in CPSEs. DPE has also extended these instructions to all
administrative Ministries/Departments dealing with CPSEs to fill up these vacancies
in a time bound manner.

19.8 DPE has also extended instructions vis-à-vis the scheme for reservation for
Ex-servicemen in CPSEs through the administrative Ministries/ Departments.
Instructions streamlining the procedure for recruitment of Ex-servicemen have also
been issued with a view to augment their in-take in CPSEs. Such CPSEs, which are
in a position to offer agencies/dealerships, have been advised to reserve quota of
such agencies/dealership for allotment to Ex-servicemen.

19.9 DPE has issued Presidential Directive on 11.3.1997 to all the administrative
Ministries / Departments concerned with the CPSEs in follow-up of DoPT instructions
for employment of physically handicapped persons in CPSEs. With the enactment of
the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full
Participation) Act, 1995, the reservation to physically handicapped persons stood
extended to identified Group ‘A’ and ‘B’ posts to be filled through Direct Recruitment.
As per the Act, not less than 3% posts shall be reserved for Persons with Disabilities
of which 1% each shall be reserved for persons suffering from (i) blindness or low
vision (ii) hearing impairment and (iii) locomotor disability or cerebral palsy. All
CPSEs have, accordingly, been advised to comply with the provisions of the Act.

*****

42
 Annex-1
(Para 6 of Introduction)

Organogram of Department of Public Enterprises

Minister (HI&PE)
Sh. Anant Geete

Minister of State
(HI&PE)
Chairman, BRPSE
Sh. P. Radhakrishnan

Secretary, DPE

(Ms. Kusumjit Sidhu)

AS & FA
(Sh. S. K. Bahri)
Secy. (BRPSE)
(Ms. S. Rawla)

Adviser
Jt. Secretary Jt. Secretary Jt. Secretary JS & Arbitrator
(Sh. M. Kumar) (Sh. R. Bhartiya)
(Smt. Deepti G. Mukerjee) (Sh. A. K. Pavadia) (Sh.R. Yadav)

Dir (Wage / CSR)

Jt. Adviser / Dir Dir (CRR/GM) Dir (MoU) Dir (Admn./Mgmt)
Dir (BRPSE / P&P) (Survey) (Sh. U. Dongre)
(Sh. J. N. Prasad) (Sh. M. K. Gupta) (Dr.M. Subbarayan)
(Sh. V. K. Jindal) (Smt. K. Mishra)

43
 Annex-2
(Para 1.6.6)

Highlights of the performance of CPSEs during 2012-13

 Total paid up capital in 277 CPSEs as on 31.3.2013 stood at Rs.1,85,282 crore

compared to Rs.1,63,863 crore as on 31.3. 2012 (260 CPSEs), showing a growth
of 13.07%.
 Total investment (equity plus long term loans) in all CPSEs stood at Rs. 8,50,599
crore as on 31.3.2013 compared to Rs.7,29,298 crore as on 31.3.2012, recording
a growth of 16.63%.
 Capital Employed (Paid up capital plus reserve & surplus and long term loans) in
all CPSEs stood at Rs.15,32,007 crore on 31.3.2013 compared to Rs.13,52,970
crore as on 31.3.2012 showing a growth of 13.23 %.
 Total turnover/gross revenue from operation of all CPSEs during 2012-13
stood at Rs.19, 45,777 crore compared to Rs.18,22,049 crore in the previous year
showing an increase of 6.79 %.
 Total income of all CPSEs during 2012-13 stood at Rs. 19,31,150 crore
compared to Rs. 18,04,615 crore in 2011-12, showing an increase of 7.01%.
 Profit of profit making CPSEs stood at Rs. 1,43,559 crore during 2012-13
compared to Rs. 1, 25,929 crore in 2011-12 showing a growth of 14.00 %.
 Loss of loss incurring CPSEs stood at Rs. 28,260 crore in 2012-13 compared to
Rs. 27, 683 crore in 2011-12 showing an increase in loss by 2.08 %.
 Overall net profit of all 229 CPSEs during 2012-13 stood at Rs.1,15,300 crore
compared to Rs.98,245 crore during 2011-12 showing an increase of 17.36%.
 Reserves & Surplus of all CPSEs went up from Rs. 6,23,671 crore in 2011-12 to
Rs. 6, 81,409 cores in 2012-13, showing an increase by 9.26 %.
 Net worth of all CPSEs went up from Rs. 7,87,535 crore in 2011-12 to Rs.
8,66,691 crore in 2012-13 registering a growth of 10.05 %.
 Contribution of CPSEs to Central Exchequer by way of excise duty, customs
duty, corporate tax, interest on Central Government loans, dividend and other
duties and taxes increased from Rs.1,62,402 crore in 2011-12 to Rs.1,62,761
crore in 2012-13, showing an increase of 0.22%.
 Foreign exchange earnings through exports of goods and services increased
from Rs.1,27,880 crore in 2011-12 to Rs.1,38,150 crore in 2012-13, showing a
growth of 8.03%.

44
 Foreign exchange outgo on imports and royalty, know-how, consultancy, interest
and other expenditure decreased from Rs.7,33,542 crore in 2011-12 to
Rs.6,46,262 crore in 2012-13 showing a reduction of 11.90%.
 CPSEs employed 14.04 lakh people (excluding contractual workers) in 2012-13
compared to 14.50 lakh in 2011-12, showing a reduction in employees by 3.28 %.
 Salary and wages went up in all CPSEs from Rs.1,05,648 crore in 2011-12 to
Rs.1,16,375 crore in 2012-13 showing a growth of 10.15 %.
 Total Market Capitalisation 46 CPSEs traded on stock exchanges of India as on
31.03.2013. The total market capitalization of 45 CPSEs based on stock prices on
Mumbai Stock Exchange as on 31.03.2012 was Rs. 12,57,792.00 crore and of 46
CPSEs as on 31.03.2013 stood at Rs. 11,16,817.00 crore. There was decrease in
market capitalization of CPSEs by -11.21% (Rs.1,40,975.00 crore) as on
31.03.2013 over market capitalization as on 31.03.2012.
 M_Cap of CPSEs as per cent of BSE M_Cap decreased from 20.24% as on
31.3.2012 to 17.64% as on 31.3.2013.

45
 Annex-3
(Para 1.6.6)

Macro view of the performance of the 229 operating CPSEs

(Rs. in crore)

Particulars 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

No. of operating Enterprises 230 227 226 217 214 213 217 220 225 229

Capital employed 452336 504407 585484 661338 724009 792232 908007 1153947 1387821 1510373

Total Gross Turnover/ Revenue 630704 744307 837295 964890 1096308 1271529 1244805 1498018 1822049 1945777

Total Net Income/Revenue 613706 734944 829873 970356 1102772 1309639 1272219 1470569 1804614 1931149

Net Worth 291828 341595 397275 454134 518485 583144 652993 709505 776161 851245

Profit before dep, Impairment, Int,

Exc. Items, Ex.Or. Items &taxes 127320 142554 150262 177990 195049 186836 211184 216602 250415 256826
(PBDIEET)
Depreciation, Depletion
31251 33147 34848 33141 36668 36780 41603 57118 53590 66117
&Amortization

DRE/Impairment 1025 986 992 5841 5802 7661 9565 187 153 436

Profit before Int, Exc. Items,Ex.Or.

95039 108420 114422 139008 152579 142395 160017 159298 186671 190271
Items &taxes (PBIEET)

Interest 23835 22869 23708 27481 32126 39300 36060 26521 35911 37789

Profit before Exc. Items,Ex.Or.

71144 85550 90714 111527 120453 103095 123957 132777 150759 152482
Items &taxes (PBEET)

Exceptional Items --- --- --- --- --- --- --- -1479 -12372 -36766

Profit before Ex.Or. Items &taxes

--- --- --- --- --- --- --- 134256 164854
(PBET) 146803

Extra-Ordinary Items -3933 -1075 -3192 -3880 -1570 -14600 -8264 -2695 -428 -1453

Profit before taxes (PBT) 75077 86625 93906 115407 122023 117695 132221 136951 147231 166308

Tax provisions 22134 21662 24370 34352 40749 33828 40018 44871 48986 51008

Net Profit/Loss after Tax from

52943 64963 69536 81055 81274 83867 92203 92129 98245 115299
Continuing Operations
Net Profit/Loss after Tax from
--- --- --- --- --- --- --- 49 1 0
Discontinuing Operations

Overall Net Profit/Loss 52943 64963 69536 81055 81274 83867 92203 92129 98246 115298

Profit of profit making CPSEs 61606 74432 76382 89581 91577 98488 108434 113944 125929 143559

Loss of loss incurring CPSEs 8522 9003 6845 8526 10303 14621 16231 21817 27683 28260

46
Profit making CPSEs (No.) 139 143 160 154 160 158 157 158 161 149

Loss Incurring CPSEs (No.) 89 73 63 61 54 55 60 62 64 79

CPSEs Making no profit/loss 2 - 1 1 - - - - -- 1

Dividend 15288 20718 22886 26819 28123 25501 33223 35700 42627 49701

Dividend tax 1961 2852 3215 4107 4722 4132 5151 5394 5877 6703

Retained profit 35835 41394 43435 50129 48429 54233 53820 51056 49741 58894

No. of Operating CPSEs that have

--- -- 2 1 --- --- --- --- ---
not furnished information ---

47
 Annex-4
(Para 2.1.3)

Salient features of Maharatna Scheme

1. Objective: The main objective of the Maharatna scheme is to empower mega

CPSEs to expand their operations and emerge as global giants. The Maharatna Scheme
will empower big sized CPSEs to expand their operations and emerge as global giants.

2. Eligibility Criteria for grant of Maharatna status: The CPSEs meeting the
following eligibility criteria are considered for Maharatna status:-
a) Having Navratna status
b) Listed on Indian stock exchange with minimum prescribed public shareholding
under SEBI regulations
c) An average annual turnover of more than Rs.25,000 crore during the last 3 years
d) An average annual net worth of more than Rs.15,000 crore during the last 3 years
e) An average annual net profit after tax of more than Rs.5,000 crore during the last
3 years
f) Should have significant global presence/international operations.

3. Procedure for grant/divestment of Maharatna status: The procedure for grant

of Maharatna status as well as their review is similar to that in vogue for the grant of
Navratna status.

4. Powers delegated to Maharatna CPSEs: The Boards of Maharatna CPSEs in

addition to exercising all powers to Navratna CPSEs, will exercise enhanced powers in
the area of investment in joint ventures/subsidiaries and creation of below Board level
posts. The Boards of Maharatna CPSEs will have powers to (a) make equity investment
to establish financial joint ventures and wholly owned subsidiaries in India or abroad and
(b) undertake mergers & acquisitions, in India or abroad, subject to a ceiling of 15% of
the net worth of the concerned CPSE in one project, limited to an absolute ceiling of
Rs.5,000 crore (Rs. 1,000 crore for Navratna CPSEs). The overall ceiling on such equity
investments and mergers and acquisitions in all projects put together will not exceed
30% of the net worth of the concerned CPSE. In addition, the Boards of Maharatna
CPSEs have powers to create below Board level posts upto E-9 level.

48
 Annex-5
(Para 2.2.2)

Salient features of Navratna Scheme

1. Eligibility Conditions for grant of Navratna status:

The PSUs, which are Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ or ‘very
good’ MOU rating in three of the last five years are eligible.
‘Composite Score’ of performance to be 60 or above
In order to review the performance of the PSU, a composite score based on its
performance for the last three years would be calculated. For calculation of
composite score, 6 performance indicators have been identified based on their
general applicability to the PSUs. The performance indicators have been chosen so
as to capture the performance of PSUs irrespective of their belonging to
manufacturing sector or services sector. The 6 identified performance indicators are:-

(Maximum Weight) 100

1. Net Profit to Networth 25

2. Manpower Cost to total Cost of Production or 15
Cost of Services
3. PBDIT to Capital employed 15
4. PBIT to Turnover 15
5. Earning Per Share 10
6. Inter Sectoral Performance 20

2. The powers delegated to the Boards of Navratna CPSEs are as under:

(i) Capital Expenditure: The Navratna CPSEs have the powers to incur capital
expenditure on purchase of new items or for replacement, without any monetary
ceiling.

(ii) Technology Joint Ventures and Strategic Alliances: The Navratna CPSEs have
the powers to enter into technology joint ventures or strategic alliances and obtain
technology and know-how by purchase or other arrangements.

(iii) Organization Restructuring: The Navratna CPSEs have the powers to effect
organizational restructuring including establishment of profit centers, opening of
offices in India and abroad, creating new activity centers, etc.

(iv) Human Resources Management: The Navratna CPSEs have been empowered
to create posts upto E-6 level and wind up all posts up to non-Board level Directors
49
and make all appointments up to this level. The Boards of these CPSEs have further
been empowered to effect internal transfers and re-designation of posts. The Board
of Directors of Navratna CPSEs have the power to further delegate the powers
relating to Human Resource Management (appointments, transfer, posting, etc.) of
below Board level executives to sub-committees of the Board or to executives of the
CPSE, as may be decided by the Board of the CPSE.

(v) Resource Mobilization: These CPSEs have been empowered to raise debt from
the domestic capital markets and for borrowings from international market, subject to
condition that approval of RBI/Department of Economic Affairs, as may be required,
should be obtained through the administrative Ministry.

(vi) Joint ventures and Subsidiaries: The Navratna CPSEs have been delegated
powers to establish financial joint ventures and wholly owned subsidiaries in India or
abroad with the stipulation that the equity investment of the CPSE should be limited
to the following:-
i. Rs. 1000 crore in any one project,
ii. 15% of the net worth of the CPSE in one project,
iii. 30% of the net worth of the CPSE in all joint ventures/ subsidiaries put
together.

(vii) Mergers and acquisitions: The Navratna CPSEs have been delegated powers
for mergers and acquisitions subject to the conditions that (i) it should be as per the
growth plan and in the core area of functioning of the CPSE, (ii) conditions/limits
would be as in the case of establishing joint ventures/subsidiaries, and (iii) the
Cabinet Committee on Economic Affairs would be kept informed in case of
investments abroad. Further, the powers relating to Mergers and Acquisitions are to
be exercised in such a manner that it should not lead to any change in the public
sector character of the concerned CPSEs.

(viii) Creation/Disinvestment in subsidiaries: The Navratna CPSEs have powers to

transfer assets, float fresh equity and divest shareholding in subsidiaries subject to
the condition that the delegation will be in respect of subsidiaries set up by the
holding company under the powers delegated to the Navratna CPSEs and further to
the proviso that the public sector character of the concerned CPSE (including
subsidiary) would not be changed without prior approval of the Government and such
Navratna CPSEs will be required to seek Government approval before exiting from
their subsidiaries.

(ix) Tours abroad of functional Directors: The Chief Executive of Navratna CPSEs
have been delegated powers to approve business tours abroad of functional directors
up to a duration of 5 days (other than study tours, seminars, etc.) in emergency
under intimation to the Secretary of the administrative Ministry.

50
3. Conditions/guidelines for delegation of Navratna powers

a) The proposals must be presented to the Board of Directors in writing and

reasonably well in advance, with an analysis of relevant factors and
quantification of the anticipated results and benefits. Risk factors if any must
be clearly brought out.
b) The Government Directors, the Financial Directors and the concerned
Functional Director(s) must be present when major decisions are taken,
especially when they pertain to investments, expenditure or organizational/
capital restructuring.
c) The decisions on such proposals should preferably be unanimous.
d) In the event of any decision on important matters not being unanimous, a
majority decision may be taken, but at least two thirds of the Directors should
be present, including those mentioned above, when such a decision is taken.
The objections, dissents, the reasons for over-ruling them and those for taking
the decision should be recorded in writing and minuted.
e) No financial support or contingent liability on the part of the Government
should be involved.
f) These CPSEs will establish transparent and effective systems of internal
monitoring, including the establishment of an Audit Committee of the Board
with membership of non-official Directors.
g) All the proposals, where they pertain to capital expenditure, investment or
other matters involving substantial financial or managerial commitments or
where they would have a long term impact on the structure and functioning of
the CPSE, should be prepared by or with the assistance of professionals and
experts and should be appraised, in suitable cases, by financial institutions or
reputed professional organizations with expertise in the areas. The financial
appraisal should also preferably be backed by an involvement of the
appraising institutions through loans or equity participation.
h) The exercise of authority to enter into technology joint ventures and strategic
alliances shall be in accordance with the Government guidelines as may be
issued from time to time.
i) The Boards of these CPSEs should be restructured by inducting at least four
non-official Directors as the first step before the exercise of the enhanced
delegation of authority.
j) These public sector enterprises shall not depend upon budgetary support or
Government guarantees. The resources for implementing their programmes
should come from their internal resources or through other sources, including
the capital markets. However, wherever Government guarantee is required
under the standard stipulations of external donor agencies, the same may be
obtained from the Ministry of Finance through the administrative Ministry. Such
51
Government guarantee shall not affect the Navratna status. Further, budgetary
support to implement Government sponsored projects of national interest and
Government sponsored Research & Development projects will not disqualify
CPSEs from retaining their Navratna status. However, for such projects,
investment decisions will be taken by the Government and not by the CPSE
concerned.

52
 Annex-6
(Para 2.3.2)

Salient features of Miniratna Scheme

1. The eligibility conditions and criteria for grant of Miniratna status are as under:
(i) Category-I CPSEs should have made profit in the last three years
continuously, the pre-tax profit should have been Rs.30 crore or more in at
least one of the three years and should have a positive net worth.
(ii) Category-II CPSEs should have made profit for the last three years
continuously and should have a positive net worth.
(iii) These CPSEs shall be eligible for the enhanced delegated powers provided
they have not defaulted in the repayment of loans/interest payment on any
loans due to the Government.
(iv) These public sector enterprises shall not depend upon budgetary support or
Government guarantees.
(v) The Boards of these CPSEs should be restructured by inducting at least three
non-official Directors as the first step before the exercise of enhanced
delegation of authority.
(vi) The administrative Ministry concerned shall decide whether a Public Sector
Enterprise fulfilled the requirements of a Category-I/Category-II company
before the exercise of enhanced powers.

2. The delegation of decision-making authority available at present to the Boards

of these Miniratna CPSEs is as follows:
(i) Capital Expenditure:
(a) For CPSEs in category I: The power to incur capital expenditure on new
projects, modernization, purchase of equipment, etc., without Government approval
upto Rs. 500 crore or equal to net worth, whichever is less.

(b) For CPSEs in category II: The power to incur capital expenditure on new
projects, modernization, purchase of equipment, etc., without Government approval
upto Rs. 250 crore or equal to 50% of the Net worth, whichever is less.

(ii) Joint ventures and subsidiaries:

(a) Category I CPSEs: To establish joint ventures and subsidiaries in India with the
stipulation that the equity investment of the CPSE in any one project should be
limited to 15% of the networth of the CPSE or Rs. 500 crore, whichever is less. The

53
overall ceiling on such investment in all projects put together is 30% of the networth
of the CPSE.

(b) Category II CPSEs: To establish joint ventures and subsidiaries in India with the
stipulation that the equity investment of the CPSE in any one project should be 15%
of the networth of the CPSE or Rs. 250 crore, whichever is less. The overall ceiling
on such investment in all projects put together is 30% of the networth of the CPSE.

(iii) Mergers and acquisitions: The Board of Directors of these CPSEs have the
powers for mergers and acquisitions, subject to the conditions that (a) it should be as
per the growth plan and in the core area of functioning of the CPSE, (b)
conditions/limits would be as in the case of establishing joint ventures/subsidiaries,
and (c) the Cabinet Committee on Economic Affairs would be kept informed in case
of investments abroad. Further, the powers relating to Mergers and Acquisitions are
to be exercised in such a manner that it should not lead to any change in the public
sector character of the concerned CPSEs.

(iv) Scheme for HRD: To structure and implement schemes relating to personnel
and human resource management, training, voluntary or compulsory retirement
schemes, etc. The Board of Directors of these CPSEs have the power to further
delegate the powers relating to Human Resource Management (appointments,
transfer, posting, etc.) of below Board level executives to sub-committees of the
Board or to executives of the CPSE, as may be decided by the Board of the CPSE.

(v) Tour abroad of functional Directors: The Chief Executive of these CPSEs
has the power to approve business tours abroad of functional directors up to a
duration of 5 days (other than study tours, seminars, etc.) in emergency, under
intimation to the Secretary of the administrative Ministry.

(vi) Technology Joint Ventures and Strategic Alliances: To enter into

technology joint ventures, strategic alliances and to obtain technology and know-how
by purchase or other arrangements, subject to Government guidelines as may be
issued from time to time.

(vii) Creation/Disinvestment in subsidiaries: To transfer assets, float fresh equity

and divest shareholding in subsidiaries subject to the condition that the delegation
will be in respect of subsidiaries set up by the holding company under the powers
delegated to the Miniratna CPSEs and further to the proviso that the public sector
character of the concerned CPSE (including subsidiary) would not be changed
without prior approval of the Government, and such Miniratna CPSEs will be required
to seek Government approval before exiting from their subsidiaries.

The above delegation of powers is subject to similar conditions as are applicable to

Navratna CPSEs.

54
 Annex-7

(Para 2.3.3)

List of Miniratna CPSEs

Miniratna Category-I CPSEs

1. Airports Authority of India

2. Antrix Corporation Limited

3. Balmer Lawrie & Co. Limited

4. Bharat Dynamics Limited

5. BEML Limited

6. Bharat Sanchar Nigam Limited

7. Bridge & Roof Company (India) Limited

8. Central Warehousing Corporation

9. Central Coalfields Limited

10. Chennai Petroleum Corporation Limited

11. Cochin Shipyard Limited

12. Container Corporation of India Limited

13. Dredging Corporation of India Limited

14. Engineers India Limited

15. Ennore Port Limited

16. Garden Reach Shipbuilders & Engineers Limited

17. Goa Shipyard Limited

18. Hindustan Copper Limited

19. HLL Lifecare Limited

20. Hindustan Newsprint Limited

21. Hindustan Paper Corporation Limited

22. Housing & Urban Development Corporation Limited

55
23. India Tourism Development Corporation Limited

24. Indian Railway Catering & Tourism Corporation Limited

25. IRCON International Limited

26. KIOCL Limited

27. Mazagaon Dock Limited

28. Mahanadi Coalfields Limited

29. Manganese Ore (India) Limited

30. Mangalore Refinery & Petrochemicals Limited

31. Mishra Dhatu Nigam Limited

32. MMTC Limited

33. MSTC Limited

34. National Buildings Construction Corporation Limited

35. National Fertilizers Limited

36. National Seeds Corporation Limited

37. NHPC Limited

38. Northern Coalfields Limited

39. North Eastern Electric Power Corporation Limited

40. Numaligarh Refinery Limited

41. ONGC Videsh Limited

42. Pawan Hans Helicopters Limited

43. Projects & Development India Limited

44. Railtel Corporation of India Limited

45. Rashtriya Chemicals & Fertilizers Limited

46. RITES Limited

47. SJVN Limited

48. Security Printing and Minting Corporation of India Limited

49. South Eastern Coalfields Limited

56
 50. State Trading Corporation of India Limited

51. Telecommunications Consultants India Limited

52. THDC India Limited

53. Western Coalfields Limited

54. WAPCOS Limited

Miniratna Category-II CPSEs

55. Bharat Pumps & Compressors Limited

56. Broadcast Engineering Consultants (I) Limited

57. Central Mine Planning & Design Institute Limited

58. Central Railside Warehouse Company Limited

59. Ed.CIL (India) Limited

60. Engineering Projects (India) Limited

61. FCI Aravali Gypsum & Minerals India Limited

62. Ferro Scrap Nigam Limited

63. HMT (International) Limited

64. HSCC (India) Limited

65. India Trade Promotion Organisation

66. Indian Medicines & Pharmaceuticals Corporation Limited

67. M E C O N Limited

68. Mineral Exploration Corporation Limited

69. National Film Development Corporation Limited

70. National Small Industries Corporation Limited

71. P E C Limited

72. Rajasthan Electronics & Instruments Limited

57
 Annex-8
(Para 3.1.4)

Salient features of the Guidelines on Corporate Governance for CPSEs

1. Composition of Board
In respect of the Board composition, these Guidelines provide that the number of
functional Directors should not exceed 50% of the actual strength of the Board; and
the number of Government nominee Directors shall be restricted to maximum of two.
In case of listed CPSEs with executive chairmen, the number of non-official Directors
shall be at least 50% of Board members. In case of unlisted and listed CPSEs with
non-executive chairmen, at least one-third of the Board Members shall be non-official
Directors. The Government has also laid down pre-defined criteria in terms of
educational qualifications, age and experience in respect of persons to be considered
for appointment as non-official Directors. Relevant clauses have been incorporated in
these guidelines to ensure ‘independence’ of non-official Directors and avoid
potential conflict of interest. It has also been provided that the Directors nominated by
any institution other than public financial institution will not be treated as non-official
Directors.

It has been further mandated that the Board meetings are held at least once in every
3 months with at least 4 such meetings held in a year and all relevant information
given to the Board. Further, the Board should lay down code of conduct for all
members and senior management. In this regard, a model Code has been
incorporated in the Guidelines to assist the CPSEs. The Guidelines inter alia provide
that the Board should ensure integration and alignment of risk management system
and the company should undertake suitable training programmes for its new Board
members.

2. Audit Committee
The provisions relating to Audit Committee require a qualified and independent Audit
Committee to be set up by CPSEs with minimum three Directors as members.
Further, two-thirds of the members of this Committee should be independent
Directors with an independent Director as Chairman. The Audit Committee has been
given extensive powers with regard to financial matters of company and is required to
meet at least 4 times in a year.

3. Subsidiary Companies
With regard to subsidiary companies, it has been provided that at least one
independent Director of holding company will be Director on the Board of subsidiary

58
company and the Audit Committee of holding company will review financial
statements of subsidiary. All significant transactions and arrangements of subsidiary
companies are required to be brought to the attention of Board of Directors of the
holding company.

4. Disclosures
The provisions regarding disclosures require all transactions to be placed before the
Audit Committee. The Guidelines mandate that while preparing financial statements,
treatment should be as per prescribed Accounting Standard and if there are any
deviations, the same are to be explicitly mentioned. Further, the Board is to be
informed about risk assessment and minimization procedures and senior
Management is to make disclosures to Board relating to all financial and commercial
transactions where they have personal interest or may have a potential conflict.

5. Compliance
It has also been mandated in the Guidelines that Annual report of companies should
contain a separate section on Corporate Governance with details of compliance. The
CPSEs will have to obtain a certificate from auditors/company secretary regarding
compliance with these Guidelines. Chairman’s speech in AGM will also carry a
section on compliance with Corporate Governance Guidelines and will form part of
the company’s Annual Report. The CPSEs are required to submit quarterly
compliance/grading report in the prescribed format to their administrative Ministries
who will furnish consolidated annual report to DPE.

6. Professionalization of Boards of CPSEs

Department of Public Enterprises (DPE) formulates policy guidelines on the Board
structure of CPSEs. In pursuance of the public sector policy being followed since
1991 several measures have been taken by the Department of Public Enterprises to
professionalize the Boards of public enterprises. The guidelines issued in 1992
provide that outside professionals should be inducted on the Boards of CPSEs in the
form of part-time non-official Directors and that the number of such Directors should
be at least 1/3rd of the actual strength of the Board. In the case of listed CPSEs
headed by executive Chairman, the number of non-official Directors (Independent
Directors) should be at least half the strength of the Board. The guidelines also
provide that the number of Government Directors on the Boards should be not more
than one-sixth of the actual strength of the Board subject to a maximum of two. Apart
from this, there should be functional Directors on each Board whose number should
not exceed 50% of the actual strength of the Board.

7. Non-Official Directors
As regards selection and appointment of non-official Directors on the Boards of
CPSE, the following eligibility criteria have been prescribed:-

59
Criteria of Experience
(i) Retired Government officials with a minimum of 10 years experience at Joint
Secretary level or above.
(ii) Persons who have retired as CMD/CEOs of CPSEs and Functional Directors
of the Schedule ‘A’ CPSEs. The ex-Chief Executives and ex-Functional
Directors of the CPSEs will not be considered for appointment as non-official
Director on the Board of the CPSE from which they retire. Serving Chief
Executives/Directors of CPSEs will not be eligible to be considered for
appointment as non-official Directors on the Boards of any CPSEs.
(iii) Academicians/Directors of Institutes/Heads of Department and Professors
having more than 10 years teaching or research experience in the relevant
domain e.g. management, finance, marketing, technology, human resources,
or law.
(iv) Professionals of repute having more than 15 years of relevant domain
experience in fields relevant to the company’s area of operation.
(v) Former CEOs of private companies if the company is (a) listed on the Stock
Exchanges or (b) unlisted but profit making and having an annual turnover of
at least Rs.250 crore.
(vi) Persons of eminence with proven track record from Industry, Business or
Agriculture or Management.
(vii) Serving CEOs and Directors of private companies listed on the Stock
Exchanges may also be considered for appointment as part-time non-official
Directors on the Boards of CPSEs in exceptional circumstances.

Criteria of Educational Qualification

(i) Minimum graduate degree from a recognized university.

Criteria of Age
(i) The age band should be between 45-65 years (minimum/maximum limit)
(ii) This could, however, be relaxed for eminent professionals, for reasons to be
recorded, being limited to 70 years.

The proposals for appointment of non-official Directors are initiated by the concerned
Administrative Ministries/Departments. The selection of non-official Directors in
respect of all CPSEs is made by the Search Committee which presently consists of
Chairman (PESB), Secretary (DPE), Secretary of the administrative
Ministry/Department of the CPSE and 2 non-official Members. The concerned
Administrative Ministry/Department appoints the non-official Directors on the basis of
recommendations of Search Committee after obtaining the approval of competent
authority.

60
 Annex -9
(Para 3.1.5)

Status of Grading Report of CPSEs for the year 2012-13

61
62
63
64
65
66
 Annex-10
(Para 8.2)

Schedule-Wise List of Central Public Sector Enterprises (As on March, 2014)

Schedule ‘A’
1. Airports Authority of India
2. Air India Limited
3. Bharat Bhari Udyog Nigam Ltd.
4. BEML Ltd.
5. Bharat Electronics Ltd.
6. Bharat Heavy Electricals Ltd.
7. Bharat Petroleum Corporation Ltd.
8. Bharat Sanchar Nigam Ltd.
9. Central Warehousing Corporation.
10. Coal India Ltd.
11. Container Corporation of India Ltd.
12. Dedicated Freight Corridor Corporation of India Ltd.
13. Electronics Corporation of India Ltd.
14. Engineers India Ltd.
15. Fertilizers & Chemicals (Travancore) Ltd.
16. Food Corporation of India
17. GAIL (India) Ltd.
18. Heavy Engineering Corporation Ltd.
19. Hindustan Aeronautics Ltd.
20. Hindustan Copper Ltd.
21. Hindustan Paper Corporation Ltd.
22. Hindustan Petroleum Corporation Ltd.
23. HMT Ltd.
24. Housing & Urban Development Corporation Ltd.
25. I T I Ltd.
26. Indian Oil Corporation Ltd.
27. IRCON International Ltd.
28. Indian Railway Finance Corporation Ltd.
29. Konkan Railway Corporation Ltd.
30. Kudremukh Iron Ore Company Ltd.
31. MMTC Ltd.
32. Mahanagar Telephone Nigam Ltd.
33. Mangalore Refinery & Petrochemicals Ltd.
34. Mazagon Dock Ltd.
35. MECON Ltd.
36. MOIL Limited
67
 37. Mumbai Railway Vikas Corporation Ltd.
38. National Aluminium Company Ltd.
39. National Building Construction Corporation Ltd.
40. National Fertilizers Ltd.
41. NHPC Ltd.
42. National Mineral Development Corporation Ltd.
43. National Textiles Corporation Ltd.
44. NTPC Ltd.
45. Neyveli Lignite Corporation Ltd.
46. North Eastern Electric Power Corporation Ltd.
47. Oil & Natural Gas Corporation Ltd.
48. Oil India Ltd.
49. ONGC Videsh Ltd.
50. Power Finance Corporation Ltd.
51. Power Grid Corporation of India Ltd.
52. RITES Ltd.
53. RailTel Corporation of India Ltd.
54. Rail Vikas Nigam Ltd.
55. Rashtriya Chemicals and Fertilizers Ltd.
56. Rashtriya Ispat Nigam Ltd.
57. Rural Electrification Corporation Ltd.
58. Satluj Jal Vidyut Nigam Ltd.
59. Security Printing & Minting Corporation of India Ltd.
60. Shipping Corporation of India Ltd.
61. State Trading Corporation of India Ltd.
62. Steel Authority of India Ltd.
63. Telecommunications Consultants (India) Ltd.
64. THDC India Limited

Schedule ‘B’
1. Andrew Yule & Company Ltd.
2. Balmer Lawrie & Company Ltd.
3. Bharat Coking Coal Ltd.
4. Bharat Dynamics Ltd.
5. Bharat Heavy Plate & Vessels Ltd.
6. Bharat Petro Resources Ltd.
7. Bharat Pumps & Compressors Ltd.
8. Brahmaputa Crackers & Polymers Ltd.
9. Brahmaputra Valley Fertilizer Corporation Ltd.
10. Biotechnology Industry Research Assistance Council
11. Braithwaite & Company Ltd.
12. Bridge & Roof Company (India) Ltd.
13. British India Corporation Ltd.
68
14. Burn Standard Company Ltd.
15. Cement Corporation of India Ltd.
16. Central Coalfields Ltd.
17. Central Electronics Ltd.
18. Central Mine Planning & Design Institute Ltd.
19. Chennai Petroleum Corporation Ltd.
20. Cochin Shipyard Ltd.
21. Cotton Corporation of India Ltd.
22. Dredging Corporation of India Ltd.
23. Eastern Coalfields Ltd.
24. Engineering Projects (India) Ltd.
25. Ennore Port Ltd.
26. Fertilizer Corporation of India Ltd.
27. Garden Reach Shipbuilders & Engineers Ltd.
28. Goa Shipyard Ltd.
29. Handicrafts & Handlooms Export Corporation Ltd.
30. Hindustan Cables Ltd.
31. Hindustan Fertilizer Corporation Ltd.
32. HLL Lifecare Ltd.
33. Hindustan Newsprints Ltd.
34. Hindustan Organic Chemicals Ltd.
35. Hindustan Shipyard Ltd.
36. Hindustan Steelworks Construction Company Ltd.
37. Hindustan Vegetable Oils Corporation Ltd.
38. HMT (International) Ltd.
39. HMT Machine Tools Ltd.
40. HMT Watches Ltd.
41. India Tourism Development Corporation Ltd.
42. India Trade Promotion Organization
43. Indian Drugs & Pharmaceuticals Ltd.
44. Indian Railway Catering & Tourism Corporation Ltd.
45. Indian Rare Earths Ltd.
46. Indian Renewable Energy Development Agency Ltd.
47. Instrumentation Ltd.
48. M S T C Ltd. .
49. Madras Fertilizers Ltd.
50. Mahanadi Coalfields Ltd.
51. Mineral Exploration Corporation Ltd.
52. Mishra Dhatu Nigam Ltd.
53. National Handloom Development Corporation Ltd.
54. National Jute Manufacturers Corporation Ltd.
55. National Projects Construction Corporation Ltd.
56. National Seeds Corporation Ltd.
57. National Small Industries Corporation Ltd.
69
 58. Northern Coalfields Ltd.
59. Numaligarh Refinery Ltd.
60. Orissa Mineral Development Company Ltd.
61. PEC Ltd.
62. Pawan Hans Helicopters Ltd.
63. Projects & Development India Ltd.
64. Scooters India Ltd.
65. South Eastern Coalfields Ltd.
66. Tyre Corporation of India Ltd.
67. Uranium Corporation of India Ltd.
68. W A P C O S Ltd.
69. Western Coalfields Ltd.

Schedule ‘C’
1. Andaman & Nicobar Islands Forest & Plantation Development Corporation Ltd.
2. Artificial Limbs Mfg. Corporation of India
3. BBJ Construction Ltd.
4. Bengal Chemicals & Pharmaceuticals Ltd.
5. BHEL Electric Machines Ltd.
6. Bharat Wagon & Engineering Company Ltd.
7. Biecco Lawrie & Co. Ltd.
8. Bisra Stone Lime Company Ltd.
9. Broadcast Engineering Consultants India Ltd.
10. Central Cottage Industries Corporation of India Ltd.
11. Central Inland Water Transport Corporation Ltd.
12. Central Railside Warehouse Company Ltd.
13. Certification Engineers International Ltd.
14. Delhi Police Housing Corporation
15. Educational Consultants (India) Ltd.
16. FCI Aravali Gypsum & Minerals (India) Ltd.
17. Ferro Scrap Nigam Ltd.
18. Hindustan Antibiotics Ltd.
19. Hindustan Insecticides Ltd.
20. Hindustan Photo Films Manufacturing Company Ltd.
21. Hindustan Prefab Ltd.
22. Hindustan Salts Ltd.
23. HMT Bearings Ltd.
24. HMT Chinar Watches Ltd.
25. Hooghly Dock and Port Engineers Ltd.
26. HSCC (India) Ltd.
27. Hotel Corporation of India Ltd.
28. Jute Corporation of India Ltd.
29. Karnataka Antibiotics & Pharmaceuticals Ltd
70
 30. Nagaland Pulp & Paper Company Ltd.
31. National Backward Classes Finance & Development Corporation.
32. National Film Development Corporation Ltd.
33. National Handicapped Finance & Development Corporation.
34. National Minorities Development & Finance Corporation
35. National Research Development Corporation of India.
36. National Safai Karamcharis Finance & Development Corporation.
37. National SC Finance & Development Corporation
38. National ST Finance & Development Corporation
39. NEPA Ltd.
40. North Eastern Handicrafts & Handloom Development Corporation Ltd.
41. North Eastern Regional Agricultural Marketing Corporation Ltd.
42. Rajasthan Electronics & Instruments Ltd.
43. Richardson & Cruddas (1972) Ltd.
44. STCL Ltd.
45. State Farms Corporation of India Ltd.
46. Triveni Structurals Ltd.
47. Tungabhadra Steel Products Ltd.

Schedule ‘D’
1. Hindustan Fluorocarbons Limited
2. Indian Medicines Pharmaceutical Corporation Ltd.
3. Orissa Drugs & Chemicals Ltd.
4. Rajasthan Drugs & Pharmaceuticals Ltd.

Others – Uncategorized
1. Air India Air Transport Services Ltd.
2. Air India Charters Ltd.
3. Air India Engineering Services Ltd.
4. Airline Allied Services Ltd.
5. Antrix Corporation Ltd.
6. Anushakti Vidhyut Nigam Ltd.
7. Assam Ashok Hotel Corporation Ltd.
8. BEL Optronic Devices Ltd.
9. Balmer Lawrie Investments Ltd.
10. Bharat Immunological & Biologicals Corporation Ltd.
11. Bharat Broadband Network Ltd.
12. Bharatiya Nabhikiya Vidyut Nigam Ltd.
13. Bhartiya Rail Bijlee Company Ltd.
14. Bharat Petro Resources JDPA Limited
15. Birds, Jute & Exports Ltd.
16. Chhattisgarh Surguja Power Ltd.
17. Coastal Karnataka Power Ltd.
71
18. Coastal Maharashtra Mega Power Ltd.
19. Coastal Tamil Nadu Power Ltd.
20. CONCOR Air Ltd.
21. CREDA – HPCL Biofuel Ltd.
22. Darbhanga – Motihari Transmission Company Ltd.
23. Deoghar Mega Power Ltd.
24. DGEN Transmission Company Ltd.
25. Donyi Polo Ashok Hotel Corporation Ltd.
26. Eastern Investment Ltd.
27. Export Credit Guarantee Corporation of India Ltd.
28. Fresh & Healthy Enterprises Ltd.
29. GAIL Gas Ltd.
30. Ghogarpalli Integrated Power Company Ltd.
31. High Speed Rail Corporation of India Ltd.
32. HLL Biotech Ltd.
33. HPCL Biofuels Ltd.
34. Hooghly Printing Company Ltd.
35. IDPL (Tamilnadu) Ltd.
36. India Infrastructure Finance Co. Ltd.
37. Indian Railway Stations Devpt. Corporation Ltd.
38. Indian Vaccine Corporation Ltd.
39. Indian Oil-Creda Biofuels Ltd.
40. IRCON Infrastructure & Services Ltd.
41. Irrigation & Water Resources Finance Corporation Ltd.
42. Jagdishpur Paper Mills Ltd.
43. Jharkhand National Mineral Devpt. Corporation Ltd.
44. J & K Mineral Development Corporation Ltd.
45. Kanti Bijlee Utpadan Nigam Ltd.
46. Karnataka Trade Promotion Organisation
47. Kumarakuppa Frontier Hotels (P) Ltd.
48. Loktak Downstream Hydroelectric Corporation Ltd.
49. Madhya Pradesh Ashok Hotel Corporation Ltd.
50. Mahanadi Basin Power Ltd.
51. Millenium Telecom Ltd.
52. MJSJ Coal Ltd.
53. MNH Shakti Ltd.
54. Narmada Hydroelectric Development Corporation Ltd.
55. National Informatics Centre Services Incorporated
56. Neyveli Uttar Pradesh Power Ltd.
57. NLC Tamil Nadu Power Ltd.
58. NMDC-CMDC Ltd.
59. NMDC Power Ltd.
60. NTPC Electric Supply Co Ltd.
61. NTPC Hydro Ltd.
72
62. NTPC Vidyut Vyapar Nigam Ltd.
63. Nuclear Power Corpn. of India Ltd.
64. Orissa Integrated Power Ltd.
65. Patran Transmission Company Ltd.
66. Power Equity Capital Advisors Pvt. Ltd.
67. Power Grid NM Transmission Ltd.
68. Power Grid Vemagiri Transmission Ltd.
69. PFC Consulting Ltd.
70. PFC Capital Advisory Service Ltd.
71. PFC Green Energy Ltd.
72. Pondicherry Ashok Hotel Corporation Ltd.
73. Power System Operation Corporation Ltd.
74. Prize Petroleum Company Ltd.
75. Purulia & Kharagpur Transmission Company Ltd.
76. Punjab Ashok Hotel Company Ltd.
77. Ranchi Ashok Bihar Hotel Corporation Ltd.
78. RAPP Transmission Company Ltd.
79. REC Power Distribution Company Ltd.
80. REC Transmission Projects Co. Ltd.
81. RITES Infrastructure Services Ltd.
82. SAIL Jagadishpur Power Plant Ltd.
83. SAIL Sindri Projects Ltd.
84. Sakhigopal Integrated Power Company Ltd.
85. Sambhar Salts Ltd.
86. SAIL Refractory Company Ltd.
87. Sethusamudram Corporation Ltd.
88. SIDCUL CONCOR Infra Company Ltd.
89. Tamilnadu Trade Promotion Organisation
90. Tatiya Andhra Mega Power Ltd.
91. TCIL Bina Toll Road Ltd.
92. Utkal Ashok Hotel Corporation Ltd.
93. Vignyan Industries Ltd.

73
 Annex-11
(Para-9.4.2)

Details of CPSEs considered by BRPSE during the year 2013-2014

No./Date of the Cases considered Recommendations of

Meeting BRPSE

109/08.04.2013 (i) STCL Ltd. (i) Recommended for

(ii) HMT Bearings Ltd. closure
(ii) Considered revival plan
110/30.5.2013 (i) HMT Bearings Ltd. (i) Recommended revival
(ii) HMT Machine Tools Ltd. package
(iii) Cement Corporation of India Ltd. (ii) & (iii) Reviewed
111/28.6.2013 (i) Hindustan Photo Films (i) Recommended for
Manufacturing Company Ltd. (HPFL) closure
(ii) Instrumentation Ltd., Kota (ii) & (iii) Reviewed
(iii) Bharat Pumps & Compressors Ltd.
112/19.7.2013 (i) Hindustan Organic Chemicals Ltd (i) Reviewed
(ii) ITI Ltd. (ii) Recommended revival
package
113/29.8.2013 (i) Heavy Engineering Corporation Ltd. (i) & (ii) Reviewed
(ii) National Film Development
Corporation Ltd.
114/17.9.2013 (i) Hindustan Insecticides Ltd. (i) & (ii) Reviewed
(ii) NEPA Ltd
115/31.10.2013 (i) Central Electronics Ltd. (i) and (ii) Reviewed
(ii) Hindustan Prefab Ltd.
116/20.12.2013 (i) Fertilizers and Chemicals (i) Revival package
Travancore Ltd. recommended.
(ii) Madras Fertilizers Ltd. (ii) Reviewed.
117/27.2.2014 (i) Brahmaputra Valley Fertilizer (i) Recommended revival
Corporation Limited. package
(ii)Hindustan Salts Ltd. (ii)&(iii)were reviewed.
(iii)Sambhar Salts Ltd.

74
 Annex-12
(Para-9.5)

List of CPSEs whose proposals have been cleared by BRPSE

Sl. Name of the CPSE & the Broad gist of the

No. Administrative Ministry/Department recommendation of BRPSE
Department of Heavy Industry
1. Hindustan Salts Ltd., Jaipur, Rajasthan Revival as a PSE
2. Bridge & Roof Co. (India) Ltd., Kolkata Revival as a PSE
3. BBJ Construction Co. Ltd., Kolkata Revival as a PSE
4. Tyre Corporation of India Ltd., Kolkata Revival as a PSE
5. HMT Bearings Ltd., Hyderabad, AP Revival as a PSE
6. Praga Tools Ltd., Secunderabad, AP Revival as a PSE
7. NEPA Ltd., Nepa Nagar, MP Revival as a PSE
8. Richardson & Cruddas Ltd., Mumbai Revival through Joint
Venture/disinvestment
9. Tungabhadra Steel Products Ltd., Revival through Joint
Bellary, Karnataka Venture/disinvestment
10. Bharat Pumps & Compressors Ltd., Revival through Joint
Allahabad, UP Venture/disinvestment
11. Cement Corporation of India Ltd., Delhi Closure of Non-operating units.
Other 3 operating units will be
revived as a PSE.
12. HMT Machine Tools Ltd., Bangalore, Revival as a PSE
Karnataka
13. Heavy Engineering Corporation Ltd., Revival as a PSE
Ranchi, Jharkhand
14. Andrew Yule & Co. Ltd., Kolkata Revival as a PSE
15. Instrumentation Ltd., Kota, Rajasthan Revival as a PSE
16. Triveni Structurals Ltd., Allahabad, UP Revival as a PSE
17. HMT Ltd., Bangalore Revival as a PSE
18. HMT Watches Ltd., Bangalore Revival as a PSE – Closure of
Bangalore unit and transfer of
Ranibagh unit to State Government
before its closure
19. Bharat Ophthalmic Glass Ltd. Closure
20. Bharat Yantra Nigam Ltd. Closure
21. Bharat Heavy Plate & Vessels Ltd. Revival through financial
restructuring & take- over by BHEL

75
22. Hindustan Cables Ltd., Kolkata Revival through Joint
Venture/disinvestment
23. HMT Chinar Watches Ltd., Jammu Revival through either transferring to
(Jammu & Kashmir) State Govt. of J & K or joint venture
with any State / Central Govt. PSU/
Private Sector
24. Hindustan Photo Films Manufacturing Closure
Company Ltd.
25. Scooters India Ltd., Lucknow, UP Revival through Joint Venture
Ministry of Textiles
26. British India Corporation Ltd., Kanpur, Revival as a PSE
UP
27. National Textiles Corporation Ltd. Revival of 15 mills as PSE units and
19 mills through Joint Venture
28. National Jute Manufactures Revival as a PSE
Corporation Ltd., Kolkata
29. Elgin Mills Co. Ltd. Revival of Elgin Mill No.2
Department of Fertilizers
30. Madras Fertilizers Ltd., Manali, Tamil Revival as a PSE
Nadu
31. Fertilizers & Chemicals Travancore Revival as a PSE
Ltd., Kochi, Kerala
32. Brahmaputra Valley Fertilizer Revival as a PSE
Corporation Ltd.
Ministry of Shipping
33. Central Inland Water Transport Revival through Joint
Corporation Ltd., Kolkata Venture/disinvestment
34. Hooghly Dock & Port Engineers Ltd., Revival as a PSE
Kolkata
Ministry of Defence
35 Hindustan Shipyard Ltd., Delhi Revival as a PSE
Department of Chemicals &
Petrochemicals
36. Hindustan Organic Chemicals Ltd., Revival as a PSE
Mumbai
37. Hindustan Insecticides Ltd., Delhi Revival as a PSE
38. Hindustan Fluorocarbons Ltd., Revival as a PSE
Hyderabad, Andhra Pradesh
Department of Pharmaceuticals
39. Hindustan Antibiotics Ltd., Pune, Revival as a PSE
Maharashtra

76
40. Bengal Chemicals & Pharmaceuticals Revival as a PSE
Ltd., Kolkata
41. Indian Drugs & Pharmaceuticals Ltd., Revival as a PSE
Gurgaon, Haryana
42. IDPL (Tamil Nadu) Ltd., Chennai Merger with IDPL
43. Bihar Drugs & Organic Chemicals Ltd., Merger with IDPL
Muzaffarpur, Bihar
Ministry of Coal
44. Eastern Coalfields Ltd., Burdwan, W. Revival as a PSE
Bengal
45. Bharat Coking Coal Ltd. Revival as a PSE
Ministry of Mines
46. Mineral Exploration Corporation Ltd., Revival as a PSE
Nagpur, Maharashtra
47. Hindustan Copper Ltd., Kolkata Revival as a PSE
Department of Scientific & Industrial
Research
48. Central Electronics Ltd., Delhi Revival as a PSE
Ministry of Water Resources
49. National Projects Construction Revival as a PSE
Corporation Ltd., Delhi
Ministry of Steel
50. MECON Ltd., Ranchi, Jharkhand Revival as a PSE
51. Bharat Refractories Ltd., Bokaro, Revival through financial
Jharkhand restructuring & merger with SAIL
52. Hindustan Steelworks Construction Revival as a PSE
Ltd., Kolkata
Deptt. of Agriculture & Co-operation
53. State Farms Corporation of India Ltd., Revival as a PSE
Delhi
Ministry of Petroleum & Natural Gas
54. Biecco Lawrie Ltd. Closure
Ministry of Railways
55. Konkan Railway Corporation Ltd., Revival as a PSE
Delhi
56. Bharat Wagon & Engineering Co. Ltd., Revival as a PSE
Patna, Bihar
57. Braithwaite & Company Ltd., Kolkata Revival as a PSE
58. Burn Standard Company Ltd., Kolkata Revival through transfer of two
wagon manufacturing units to D/o.
Railways and transfer of one
77
 refractory unit to M/o. Steel
Ministry of Housing & Urban
Poverty Alleviation
59. Hindustan Prefab Ltd. Revival as a PSE
Department of Food & Public
Distribution
60. Hindustan Vegetable Oils Corporation Closure of Breakfast Food Unit
Ltd.
Ministry of Development of North
Eastern Region
61. North Eastern Handicrafts and Revival as a PSE
Handlooms Development Corporation
Ltd.
Ministry of Information &
Broadcasting
62. National Film Development Revival as a PSE
Corporation Ltd.
Department of Telecommunications
63. ITI Ltd. Revival as a PSE
Department of Commerce
64. STCL Ltd. Closure

78
 Annex-13
(Para 9.7)

Cash and Non-Cash Assistance Approved by the Government in Respect of

BRPSE Recommended Proposals

S. Name of the CPSE Assistance (Rs. In Crore)

No. Cash # Non-Cash Total
@
Department of Heavy Industries
1 Hindustan Salts Ltd. 4.28 73.30 77.58
2 Bridge & Roof Co. (India) Ltd. 60.00 42.92 102.92
3 BBJ Construction Co. Ltd. -- 54.61 54.61
4 HMT Bearings Ltd. 7.40 43.97 51.37
5 Praga Tools Ltd. 5.00 209.71 214.71
6 Heavy Engineering Corporation Ltd. 102.00 1116.30 1218.30
7 Cement Corporation of India Ltd. 184.29 1267.95 1452.24
8 Richardson & Cruddas Ltd. - - -
9 Tungabhadra Steel Products Ltd. - - -
10 Bharat Ophthalmic Glass Ltd. ## 9.80 -- 9.80
11 Bharat Pumps and Compressors 3.37$ 153.15 156.52$
Ltd.
12 HMT Machine Tools Ltd. 859.04 196.38 1055.42
13 Bharat Heavy Plate Vessels Ltd. -- --- --$$
14 Andrew Yule & Co. Ltd. 87.06 457.14 544.20
15 Instrumentation Ltd. 48.36 549.36 597.72$$
$
16 Bharat Yantra Nigam Ltd.## 3.82 7.55 11.37
17 Tyre Corporation of India Ltd. -- 1018.45 1018.45
18 NEPA Ltd. 234.18 634.94 869.12
19 Scooters India Ltd. 90.38 111.58 201.96
20 HMT Ltd. 447.92 635.56 1083.48
21 Hindustan Photo Films 181.54 -- 181.54
Manufacturing Company Ltd. ##
Ministry of Mines

79
22 Hindustan Copper Ltd. -- 612.94 612.94
23 Mineral Exploration Corporation Ltd. - 104.64 104.64
Ministry of Shipping
24 Central Inland Water Transport 73.60 280.00 353.60
Corporation Ltd.
25 Hooghly Dock & Port Engineers Ltd. 148.08 628.86 776.94
Department of Defence Production
26 Hindustan Shipyard Ltd. 452.68 372.22 824.90
Ministry of Steel
27 MECON Ltd. 93.00* 23.08 116.08
28 Bharat Refractories Ltd. -- 479.16 479.16
Ministry of Textiles
29 NTC including its subsidiaries 39.23 - 39.23
30 British India Corporation Ltd. 338.04 108.93 446.97
31 National Jute Manufactures 517.33 6815.06 7332.39
Corporation Ltd.
Department of Pharmaceuticals
32 Hindustan Antibiotics Ltd. 137.59 267.57 405.16
33 Bengal Chemicals & 207.19 233.41 440.60
Pharmaceuticals Ltd.
Department of Chemicals & Petrochemicals
34 Hindustan Organic Chemicals Ltd. 250.00 110.46 360.46
35 Hindustan Insecticides Ltd. - 267.29 267.29
Department of Fertilizers
36 Fertilizers & Chemicals (Travancore) - 670.37 670.37
Ltd.
Department of Scientific & Industrial Research
37 Central Electronics Ltd. - 16.28 16.28
Department of Agriculture & Co-operation
38 State Farms Corporation of India 21.21 124.42 145.63
Ltd.
Ministry of Railways
39 Konkan Railway Corporation Ltd. 857.05 3222.46 4079.51
40 Bharat Wagon & Engineering 49.45 258.73 308.18
Company Ltd.

80
 41 Braithwaite & Company Ltd. 4.00 280.21 284.21
42 Burn Standard Company Ltd. 75.43 1139.16 1214.59
Ministry of Water Resources
43 National Projects Construction -- 219.43 219.43
Corporation Ltd.
Ministry of Housing & Urban Poverty Alleviation
44 Hindustan Prefab Ltd. -- 128.00 128.00
Ministry of Information & Broadcasting
45 National Film Development 3.00 28.40 31.40
Corporation Ltd.
Ministry of Petroleum & Natural
Gas
46 Biecco Lawrie Ltd. -- 59.60 59.60
Ministry of Development of North
Eastern Region
47 North Eastern Handicrafts and 8.50 83.06 91.56
Handlooms Development
Corporation Ltd.
Department of Commerce
48. STCL Ltd.## -- -- --
Department of
Telecommunications
49 ITI Ltd. 3986.00 170.79 4156.79
Total 9589.82 23277.40 32867.22
Implemented by Holding Companies
Department of Chemicals & Petrochemicals
1 Hindustan Fluorocarbons Ltd. 12.93 57.31 70.24
Ministry of Coal
2 Eastern Coal Fields Ltd. -- 2470.77 2470.77
3 Bharat Coking Coal Ltd. 1350.00 3032.00 4382.00
Total 1362.93 5560.08 6923.01

# Cash Assistance involve budgetary support through equity/loan/grants

@ Non-cash Assistance involve waiver of interest, penal interest, GOI loan, Guarantee
fee, conversion of loan into equity/debentures etc.
## Government have approved closure/winding up of these CPSEs
81
 $ In addition, ONGC and BHEL would extend cash support to the extent of Rs. 150 crore
and Rs. 20 crore respectively.
* Excludes continuation of 50% interest subsidy not exceeding Rs.6.50 crore per annum
on VRS loans
$$ Cabinet approved “in principle” the takeover of BHPV by BHEL with the direction that
the valuation of BHPV be carried out prudently on the basis of established principles and
if the takeover is not found feasible, the matter be brought back before the Cabinet.
$$$ Interest free mobilization advance of Rs.30 crore from BHEL for technological up-
gradation and diversification which would be repaid through supplies to be made to BHEL
against their orders. Interest free advance of Rs. 25 crore from BHEL to ILK at the
beginning of each year for the next three years from 2008-09 which will be adjusted
against supplies to BHEL in the same year.
*****

82
 Annex-14
(Para 10.8)

List of Operational Nodal Agencies Under CRR Scheme

Sl. No. Nodal Agency

1 Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP),
Hyderabad
2 Central Institute of Plastics Engineering & Technology, Bhubaneswar
4 Indian Council of Small Industries, Kolkata
5 Institute of Leadership Development (ILD), Jaipur
6 KIIT School of Rural Management (KSRM), Bhubaneswar
7 MPCON Ltd. Bhopal
8 MITCON Consultancy Services Ltd., Pune
9 U.P Industrial Consultants Ltd. Kanpur

83
 Annex-15
(Para 14.2)

List of CPSEs which have not furnished the Annual Compliance Reports (2011-12)

Ministry of Civil Aviation

1. Air India Air Transport Services
2. Air India Charters Ltd.
3. Air India Ltd.
4. Airline Allied Services Ltd.
5. Airports Authority of India Ltd.

Ministry of Coal
6. Bharat Cooking Coal Ltd.
7. Central Coalfields Ltd.
8. Central Mine Planning & Design Institute Ltd.
9. Coal India Ltd.
10. Mahanadi Coalfields Ltd.
11. Neyveli Lignite Corpn. Ltd.
12. Northern Coalfields Ltd.
13. South Eastern Coalfields Ltd.
14. Western Coalfields Ltd.

Department of Food & Public Distribution

15. Hindustan Vegetable Oils Corpn. Ltd.

Department of Financial Services

16. India Infrastructure Finance Co. Ltd.

Department of Ayush
17. Indian Medicines & Pharmaceutical Corpn. Ltd.

Department of Heavy Industry

18. BHEL Electrical Machines Ltd.
19. HMT (International) Ltd.
20. HMT Bearings Ltd.
21. HMT Chinar Watches Ltd.
22. HMT Machine Tools Ltd.
23. HMT Watches Ltd.
24. Scooters India Ltd.

Department of Secondary Education & Higher Education

84
 25. EdCIL (India) Ltd.

Ministry of Micro, Small & Medium Enterprises

26. National Small Industries Corpn. Ltd.

Ministry of Power
27. Kanti Bijlee Utpadan Nigam Ltd.
28. NTPC Electric Supply Co. Ltd.
29. NTPC Vidyut Vyapar Nigam Ltd.
30. PFC Capital Advisory Services Ltd.
31. PFC Consulting Ltd.
32. Power System Operation Corpn. Ltd.
33. REC Power Distribution Co. Ltd.
34. REC Transmission Project Co. Ltd.

Department of Biotechnology
35. Bharat Immunologicals & Biologicals Corpn. Ltd.
36. Indian Vaccine Corpn. Ltd.

Department of Space
37. Antrix Corpn. Ltd.

85
 Annex-16
(Para 18.5)

RFD 2012-13: Objectives, Corresponding Achievements and the Composite Score

86