NEW DELHI, Apr 29: Steel Ministry has directed all PSUs under its administration to set up a committee in each of them with the mandate to prepare annual targets and review performances.
The committee, a must from now on, should comprise at least five Board directors – one each from the PSU and the government and a minimum of three independent directors.
“Major PSUs like SAIL, RINL and NMDC should invariably have a sub-committee comprising one director of the PSU, one government and a minimum of three independent directors for preparing MoU targets and reviewing performance against those,” steel ministry has written in a letter to the PSUs.
As per the current practice, state-run units are required to prepare a target projecting their annual production, sales and revenue. This follows the signing of a Memorandum of Understanding (MoU) between the company and the ministry and the performance is reviewed at year-end.
Though there could be many reasons for the performance of a company in a particular year, the management often themselves in embarrassing positions because of the glaring mismatches between the projection and the actual performance.
During a quarterly review of the performance, Steel Minister Beni Prasad Verma expressed concern over MOIL’s falling profits and asked the company to improve its performance. (PTI)
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