SAIL, NTPC chiefs accuse government of interference, call for separating ownership from management New Delhi: The chiefs of Steel Authority of India Ltd ( SAIL ) and NTPC Ltd on Thursday launched a scathing public attack on the way the government runs public sector undertakings (PSUs), accusing it of interference and calling for separating ownership from management. Shri C.S. Verma, chairman of SAIL, and Arup Roy Choudhury, CMD of NTPC, made their comments at a conference in New Delhi at a time when the government wants state-owned firms, which employ 1.39 million people, to work towards reviving economic growth. They vented their frustration at a meeting of the Confederation of Indian Industry (CII), a lobby group. “Government-owned companies, that have for long been at the receiving end, decided to bare it all at the CII annual meeting 2014, expressing strong reservations on the nature of government ownership, management control by parent ministries and lack of autonomy in appointment of boards and CEOs,” CII said in a statement. In his remarks, Verma, who heads India’s second largest steel maker, said, “There are 229 PSUs in the country. We don’t need them in the present form. More than 80% profit is contributed by the top 10 PSUs. The business of the government is not to do business. There is a lot of interference happening.” “In the present shape, there are many ills in running a PSU. There has to be separation of ownership and management. There should also be outside experts for the selection to a PSU,” added Verma. Arguing similarly, Roy Choudhury said, “There is no clarity about who owns these companies...The problem is not about who is the owner, but whether the owner is willing to take the responsibility. As a CEO (chief executive officer) I don’t have a problem in having an owner, but I should know him.” The utility has the capacity to generate 42,964 megawatts (MW) of electricity, with a target of becoming a 128,000MW power producer by the year 2032. “If you are a non-performing CEO, you are the best CEO,” added Roy Choudhury in sarcasm. Arun Maira, urban affairs member in the Planning Commission, who was moderating the discussion, also criticized the government for its interference. MINT
Posted on: Fri, 28 Mar 2014 02:50:03 +0000
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