Retaining control over the PSUs, the government has rejected a demand for allowing Chief Executives of profit-making state firms to travel abroad without approval of the administrative ministries.
"Requirement of prior approval of the Secretary of the concerned administrative ministry... Is required without any change," an official in the Department of Public Enterprises (DPE) said.
The PSUs, especially those making profits, had raised the issue of granting functional freedom to CEOs of the public sector units, including undertaking overseas visits concerning business.
It was suggested that instead of seeking the nod from the Secretary in the administrative ministry, the permission should be granted by the board of directors (BoD) of the concerned PSU.
Turning down the demand, the DPE has said that "obtaining approval from the BoD for specific foreign tour may be a more cumbersome procedure unless prior general approval of the board is obtained for a specific number of foreign visits of executives."
It was endorsed by Sanjiv Batra, who recently retired as the Chairman and Managing Director of state-owned trading giant MMTC.
"Taking permission from the Secretary of the concerned administrative ministry is easier and less time consuming than getting approval of the board," Batra added.
While prior to 1999, the PSU heads were required to obtain approval of the minister concerned for overseas tours.
The rules were amended in 2005 and instead of the minister, secretary in the administrative ministry was given this power.
