core sector communique

Consultative Committee Meeting of the Ministry of Heavy Industries and Public Enterprises Held

The Meeting of the Parliamentary Consultative Committee for the Ministry of Heavy Industries and Public Enterprises was held here today. It was chaired by Shri Praful Patel, Minister for Heavy Industries and Public Enterprises. The members were informed about the new initiatives and actions being taken by both the Departments of Heavy Industries as well as the Department of Public Enterprises (DPE). Some of the news initiatives include: • Task Force on MoU has observed that in the absence of documentary evidence to support achievement of non-financial parameters, DPE is handicapped in the performance evaluation of Central Public Sector Enterprises (CPSEs). Therefore, DPE/Task Force may consider automatic downgrading by at least one notch from the rating claimed by CPSEs in respect of the parameters for which documentary evidence have not been submitted to DPE. • Adoption of innovative practices is included as a new parameter with some weightage in the MoU. DPE will discuss and deliberate on the meaning, scope and implementation of best innovative practices and issue instructions for the compliance by CPSEs. • Compliance of Policies and Guidelines issued by Department of Public Enterprises is a new parameter in the MoU with some weightage assigned to it. To begin with, DPE is selecting 5 new issues/areas for compliance by CPSEs, for example: listing by CPSEs; issue of bonus shares; reservation for SC, ST and OBC in appointment; posting of deputationists; implementation of 2007 Pay Revision Scheme and switching over from CDA to IDA pattern of pay scales. • The guidelines also draw the attention of the CPSEs to the issues of International Financial Reporting Standards (IFRS) converged Indian Accounting Standards, submission of financial data in the format of Schedule-VI under Section 211 of the Companies Act and submission of Balance Sheet, Profit and Loss Account using the Extensible Business Reporting Language (XBRL) taxonomy. CPSEs will follow these instructions, wherever applicable, for submitting draft MoUs. The members were also briefed on the proposed revival, financial restructuring, and disinvestment plans of a number of CPSEs as well as the action being initiated by the Bureau for Restructuring of Public Sector Enterprises (BRPSE). The members who attended the meeting were Dr. Bhola Singh of Lok Sabha and Shri Nandamuri Hari Krishna and Shri Narendra Kumar Kashyap of Rajya Sabha.