Proposal to hire private sector talent in PSUs wins approval

The chairperson and members of PESB should hold office for three years

June 02, 2016 12:57 am | Updated November 17, 2021 01:44 am IST - NEW DELHI:

Candidates seeking employment look on during a job. File Photo: AP

Candidates seeking employment look on during a job. File Photo: AP

The Cabinet gave an ‘ex-post facto’ approval for amending public sector recruitment rules to allow the selection of candidates from the private sector and state public sector enterprises.

The nod is for the selection of candidates from state public sector enterprises and the private sector as “non-internal candidates for a period of five years for appointment in Central Public Sector Enterprises (CPSEs),” according to a government statement.

The move is expected to bring in greater efficiency but there are some concerns that need to be addressed, according to an expert.

Shield from politics

“It is a good move, but it depends on how it is done,” former Cabinet Secretary T.S.R. Subramanian said. “Those who do well in the private sector will get better returns there than in the public sector while the public sector offers greater job security. The good talent at the top of the private sector will not migrate. Those not in the top rungs may see an advantage in PSUs.”

“So, there must be careful selection so that those who have not been able to make it in the private sector don’t opt for a government job just because of higher job security,” he said. The selection process must be shielded from politics which is something difficult to do in India, Mr. Subramanian said.

The Cabinet also approved the decision that the chairperson and members of the public enterprises selection board (PESB) should hold office for a period of three years from the assumption of charge or until they turn 65 years of age, whichever is earlier.

Rail project

The Cabinet Committee on Economic Affairs (CCEA) gave its nod to develop a new 51 kilometer broad-gauge line in Uttar Pradesh between Mau station of North Eastern Railway and Tarighat terminal station of East Central Railway. The project is expected to be completed in six years at a cost of Rs.1,765 crore.

The CCEA also approved the Telecom Ministry’s proposal for the continuation of 30 per cent quota reserved for Indian Telephone Industries (ITI) on procurement orders by state-owned BSNL, MTNL and BBNL. Also, 20 per cent of the network roll-out orders for turnkey projects such as GSM network roll-out of BSNL and MTNL, and National Optical Fibre Network (NOFN) of BBNL will be reserved for ITI.

India-Qatar pact

The Cabinet approved the signing of three memoranda of understanding (MoU) between India and Qatar for cooperation in skill development and ‘recognition of qualifications.’ It will strengthen ties in the field of tourism, and provide cooperation and mutual assistance in matters related to customs.

Another MoU approved by the Cabinet was one between the United States of America and India to enhance cooperation in wildlife conservation and combating wildlife trafficking.

The Cabinet was also apprised of the signing of an MoU between India and Brunei Darussalam in the field of youth and sports affairs. The MoU was signed on February 2, 2016 in Brunei.

The Cabinet also gave its ex-post facto approval for an MoU signed between the Directorate General of Civil Aviation and France's Civil Aviation Authority Direction Generale de l’Aviation Civile (DGAC) in a bid to enhance skills and expertise of India's aviation officials.

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