ONGC Chief Pitches for Fixed Tenure of PSU Top Brass - The New Indian Express

ONGC Chief Pitches for Fixed Tenure of PSU Top Brass

Published: 21st December 2013 10:40 AM

Last Updated: 21st December 2013 10:40 AM

ONGC Chairman Sudhir Vasudeva on Friday pitched for fixed tenure for top management of PSUs and greater autonomy to their boards to make them competitive.

In his address at the AIMA’s 3rd PSU Summit, he said a high level government committee had recommended fixed tenure of meaningful duration for the top management of state-owned firms to given them time to help them realise their vision for the companies.

“This (fixed tenure) will facilitate a long-term approach and ensure a strategic bent to the company’s decisions.”

Vasudeva, 59, whose appointment as head of India’s most profitable company was delayed by eight months due to false complaints, may not be able to take all initiatives to their logical conclusion in his less than two-and-half-year tenure that ends in February next year.

Seeking greater financial autonomy, he advocated creation of a ‘Super-Maharatna’ category of PSUs by empowering them to compete in the international space efficiently.

Vasudeva said the government should make timely appointments of heads of PSUs as well as board positions “so that there is no break in the decision making structure of the organisation.”

PSUs’ share of GDP was 10% in the beginning of the 70s, which grew in the following two decades and more than doubled to 25% by 1990-91.

“To my opinion, the issue of ensuring a level playing field in terms of freedom of doing business with our counterparts in private sector alone has the potential of unleashing tremendous capabilities of PSEs which in turn would surely usher in a new era of growth for the country,” he added.

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