BOARD FOR RECONSTRUCTION OF PUBLIC SECTOR ENTERPRISES (BRPSE)
- The Government had constituted Board for Reconstruction of Public Sector Enterprises (BRPSE) in December, 2004 as an advisory body to address the task of strengthening, reviving and restructuring of Central Public Sector Enterprises (CPSEs).
- The Board has given its recommendations to Govenunent in respect of 64 CPSEs till May, 2014.
- Based on the recommendations of the BRPSE, revival packages of 48 CPSEs and closure of 4 CPSEs have been approved by the Government.
MAHARATNA SCHEME
- The Government has introduced the Maharatna scheme in February, 2010 with the objective to delegate enhanced powers to the Boards of identified large sizes Navratna CPSEs so as to facilitate expansion of their operations.
- The Maharatna CPSEs have been delegated additional powers in the area of investment in joint ventures / subsidiaries and human resources
- The Maharatna CPSEs can invest 5000 crores in one project and create below Board level posts upto E-9 level (ie, upto Executive Director level).
- The Government has conferred Maharatna status to 7 CPSEs namely, (i) Bharat Heavy Electricals, (ii) Coal India Ltd (iii) GAIL India Ltd. (iv) Indian Oil Corporation Limited (v) NTPC Limited, (vi) Oil & Natural Gas Corporation Limited (vii) Steel Authority of India Limited.
NAVRATNA SCHEME
- The Government had introduced the Navratna scheme in 1997 in order to support public sector companies in their drive to become global giants.
- The Navratna CPSEs have been given enhanced autonomy and delegation of powers to incur capital expenditure to enter into technology joint ventures/ strategic alliances, to effect organizational restructuring, to create posts up to E-6 level and wind up posts up to Board level and to raise capital from domestic and international markets.
- Presently there are 16 Navratna CPSEs, (i) Bharat Electronics Limited, (ii) Bharat Petroleum Corporation Limited, (iii) Engineers India Limited, (iv) Hindustan Aeronautics Limited (v) Hindustan Petroleum Corporation Limited, (vi) Mahanagar Telephone Nigam Limited, (vii) National Aluminum company Limited (viii) National Building Construction Limited (ix) Neyveli Lignite Corporation Ltd. (x) NMDC Limited (xi) Oil India Ltd. (xii) Power Finance Corporation Limited, (xiii) Power Grid Corporation of India Limited (xiv) Rashtriya Ispat Nigam Limited (xv) Rural Electrification Corporation of India Limited and (xvi) Shipping Corporation of India Limited.
MINIRATNA SCHEME
- The Government had introduced the Miniratna scheme in 1997 in order to grant enhanced autonomy & delegation of powers to profit making public sector enterprises.
- The enhanced powers given to Miniratna CPSEs include the power to (i) incur capital expenditure, (ii) enter into joint ventures, (iii) set up technological and strategic alliances and (iv) formulate schemes of human resources management.
- The concerned administrative Ministries are empowered to declare a CPSE as a Miniratna if it fulfills the eligibility conditions.
- Presently, there are 71 Miniratna CPSES (53 category-I and 18 category-II).
- The other profit making CPSEs, i.e., those which have shown a profit in each of the 3 preceding accounting years and have a positive net worth, have also been delegated enhanced powers in the area of capital expenditure.
GUIDELINES ON CORPORATE SOCIAL RESPONSIBILITY (CSR)
- All the companies, including the Central Public Sector Enterprises (CPSEs) are governed by the provisions of Section-135 of the Companies Act, 2013 which deals with Corporate Social Responsibility (CSR).
- The companies which meet the eligibility criteria are mandated to spend, in every financial year, at least 2% of the average net profit of the three preceding financial years, in pursuance of their CSR policy.
- Under the extent CSR Rules of Ministry of Corporate Affairs, all companies including CPSEs are mandated to spend the entire amount allocated under CSR during the year.
PERMANENT MACHINERY OF ARBITRATION
- A Permanent Machinery of Arbitration (PMA) has been set up in the Department of Public Enterprises (DPE) in 1989 for resolving commercial disputes between CPSES, banks, port trust, etc. or CPSE and the Government Departments.
- The disputes are required to be referred to Secretary, DPE, who nominates the Arbitrator of the PMA, a Joint Secretary and Legal Adviser of Law Ministry, for Arbitration to decide the dispute of the parties.
- Award of the Arbitrator may be challenged before the Law Secretary whose decision is final and binding upon the parties.
- The Arbitrator shall make his award within six months after entering upon the reference.
