Wednesday, June 11, 2014

Will Modi government prioritise revival of sick PSUs?

Nirmala Sitharaman
AFTER the historic victory in Parliamentary elections, BJP government led by Narendra Modi has yet not completed its first month in office. Still, aspirations are high among various quarters of society from the government that has a mandate for hope. Tens of thousands of employees of the...
sick PSUs are also hoping for good days. The important question is will the government take measures to revive the loss-making entities or will it sell them to private players.
Union commerce and industry minister of state Nirmala Sitharaman on June 7 said in Hyderabad that Prime Minister Narendra Modi has asked the ministry to  look into the issues of sick Public Sector Undertakings(PSUs) and sort out the issues."
She said, “In Telangana also there are lot of PSUs which are in bad shape. The government would look into their problems and try to help them.’’
The issue of sick PSUs also figured in the pre-Budget consultations that Finance Minister Arun Jaitley held with industry leaders. Those who attended in the meeting held in New Delhi includes Ajay S. Shriram, Confederation of Indian Industries (CII); Sidharth Birla, Federation of Indian Chambers of Commerce and Industries (FICCI); Rana Kapoor, ASSOCHAM; Sharad Jaipuria, PHD Chammer of Commerce and Industry; B.P. Rao, CMD, BHEL; J. Vadivelu, South Indian Chamber of Commerce and Industry; among others.
Some of the proposals that were put forward before the minister include massive investment in the infrastructure in order to stimulate the economy for job creation with a key role for the public sector undertakings (PSUs), PSU should be strengthened and expanded, disinvestment of shares of profit making public sector units should be stopped forthwith. Budgetary support should be given for revival of potentially viable sick Central PSUs.
The ban on recruitment in Government departments, PSUs and autonomous institutions (including recent Finance Ministry’s instruction to abolish those posts not filled for one year) should be lifted.
Proper allocation of funds be made for interim relief and 7th Pay Commission.
As of March 2012, 64 of India’s 260 Central Public Sector Enterprises (CPSEs) and their subsidiaries had been declared sick and they have been approaching Board of Reconstruction of Public Sector Enterprises (BRPSEs) and the Board for Industrial & Financial Reconstruction (BIFR) for financial assistance.


  1. Respected mam,
    Still the DHI bureaucrats are following the UPA govt policy and works with vested interest,they dont know how to revive the sick psu and turn around the psu,but,they got timely wage revision,punishment for innocent sick psu employees,who is the responsible for psu became sick,They are not allowing the sick psu revival.we are getting 1987 scale of pay in 2014,why this step motherly treatment for us,we are also psu employees in India,we are ready to work but who will lead us,we hope our respectful dynamic PM will find out that culprits and punish them soon.

  2. This has reference to the DOPT O.M No.28011 1 2013 Estt C dated 23 12 13 regarding Consolidated Instructions on Forwarding of Applications of Government Servants for Outside Employment regarding. Copy of circular attached.

    It is observed that Most of the Public Sector Undertakings PSU are not following uniformity i.e. Ordinarily every employee should be permitted to apply for outside post but they should not be done more than 04 times in a year, w.r.t forwarding of employment applications through proper channel, seeking of NOC at the time of interview in CPSUs from CPSU employee, without which they are not allowing to appear the interview. This it violates equality as envisaged under Articles 14 and 16 of the Constitution of India.

    Non forwarding such employment application or non issue of NOC or imposing such conditions of forwarding applications Through proper Channel on employees of CPSU showing internal circulars and policies of the concerned PSUs which have no stand against the fundamental rights vested to every citizen right to choose employment may also amount to violation of Human Rights as it is affecting the Rights relating to Life Liberty Equality and Dignity of the individual guaranteed by the Constitution as per the provisions under Section 2 1 d of the Protection of Human Rights Act 1993. Imposing such conditions is also causing a perennial mental agony in the minds of CPSU employees. Non forwarding of applications may be treated violation of Article 21 and also Article 23. In fact Fundamental Rights cannot even be waived by any individual, organization.

    Despite very clear case laws Constitutional Human Rights provisions and knowing full well that Administrative Instructions most of the CPSUs are least bothered while issuing employment notifications by compelling NOC, imposing unwarranted conditions for the interview which in fact requires human approach rationalization uniformity of rules and conformity to the compliance of policies or guidelines already issued by a very specialized Nodal Agency for CPSUs i.e. DOPT and DPE.

    PSUs declined by financial performances, ultimately cut perks, salary deductions have no right to compel their employees to retain, by implementing unconstitutional rights, unfair practices over meritorious employees for switch over to other good PSU through open interview. Even these loss PSUs does not guarantee life time employment to the newly joined employees, whose entire career & family spoiled financially by these PSUs ultimately owned by the Government. VRS scheme implemented is only beneficial to Old employees served many years, mostly redundant, out of merit, who have a large contribution towards downfall the PSU, for which new employees will be the ultimate sufferers.

    In the counterpart the best practices have also been followed by a few CPSEs NTPC NMDC NBCC HLL BHEL..etc in their employment notifications w.r.t NOC Forwarding of application prescribes that:

    Candidates working in government Semi govt PSU and autonomous Bodies should apply through proper channel or furnish No Objection Certificate at the time of interview. However in the event of difficulty in getting NOC from their Parent department Organization they may submit an undertaking at the time of interview that they will not claim any service transfer benefits or protection of pay in case of their selection. However they have to produce the proper relieving order from their organization in the event of their selection at the time of reporting for Joining.

  3. With reference to above DOPT circular, Most of the PSUs (specially Fiertilizers PSUs) not followed the above circular. Govt in this reagrds sholud assured the comply the DOPT circulars.