Follow norms in filling up PSU posts: PM

Iffco, FCI, Gail chiefs' posts up for grabs

Prime Minister Manmohan Singh has written to ministers asking them not to deviate from guidelines in appointments of public sector undertaking (PSU) chiefs.

Now that the spotlight has shifted from the appointment of governors and ministers are in the process of settling down, the Prime Minister's Office (PMO) is clear that the tendency of using public sector undertaking appointments as a source of political patronage must be stopped.

The Prime Minister's letter, written earlier this week, says efficient functioning of public sector enterprises is critical to the fulfilment of many commitments of the common minimum programme.

"Therefore, it is necessary to ensure that guidelines and policies evolved by the Union government with respect to the structure, composition, selection, appointment and service conditions of the board of directors and senior management personnel are strictly followed".

The Prime Minister says standing instructions and guidelines issued by the appointments committee of the Cabinet (ACC) and the personnel and training department exist and are issued from time to time.

"While requesting you to ensure that there are no deviations from these guidelines and standing instructions, I am directing the Cabinet Secretary to closely monitor compliance," Singh said.

The letter is aimed at second-tier appointments, which are likely to be announced now. Posts like the chairman of Iffco, the Food Corporation of India (FCI), and the chairmanship of oil and petroleum majors like Gas Authority of India Ltd (GAIL) will now be up for grabs and are anticipated to set off a tug of war.

Political appointments in public sector undertakings used to be the order of the day when non-Congress coalition governments were in power in the Centre.

What is puzzling, however, is that lately hardly any politicians have been appointed to these jobs, except possibly Janata Dal (United) office-bearer KC Tyagi who was made chairman of the FCI when Sharad Yadav was food and civil supplies minister in the Atal Bihari Vajpayee government.

The Prime Minister's letter could be a brainwave of his Principal Secretary TKA Nair who was the chief of the public enterprises selection board before his present appointment. The letter is a way of asserting the PMO's authority as well as the principal secretary's.