The Standing Conference of Public Enterprises (SCOPE) today pitched for greater autonomy and efficiency through reforms aimed at separating the management from ownership in CPSEs.
The SCOPE executive board, which met here, also discussed the idea of having a holding company representing government ownership-- to start with for Mahartna and Navratna CPSEs.
"The Board emphasised on measures for greater autonomy and efficiency of CPSEs through further reforms aimed at separating the management from ownership in these organisations," SCOPE Chairman C S Verma told reporters after board meeting.
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The concept of a holding company on the lines of already successfully operating ones such as Temasek of Singapore was discussed, Verma, who is also the SAIL Chairman, said.
"Temasek was incorporated in 1974 to hold and manage investments and assets previously held by the Singapore government, leaving the Ministry of Finance to focus on its core role of policy making and regulations," he said.
"This is the need of the hour, keeping in view the challenges of the dynamic market conditions," Verma added.
Key issues for enhanced functioning of CPSEs were also deliberated, including measures for enhanced autonomy to PSE boards, succession planning, talent management, and corporate governance.
In addition, further course of action was deliberated to set up a Public Sector Academy for training and capacity building of new recruits and refresher courses for middle level executives of PSEs, Verma said.
SCOPE also decided to organise and facilitate an international tour to study the global best practices of managing state-owned enterprises in major economies like China and Singapore, he said.
Highlights of performance and contribution of CPSEs, including a net profit of Rs 1.15 lakh crores in FY 2013, were circulated on the occasion.
"It also included a networth of Rs 8.67 lakh crore (as on March 31, 2013) with an investment of Rs 8.51 lakh crore (as on March 31, 2013)," Verma said.
CPSEs have made a contribution of Rs 1.63 lakh crore during FY 2013 to the central exchequer and have a turnover equivalent to 20-24 per cent of India's GDP in the recent years, Verma said.
"They remain one of the major employers in the country providing employment to around 14 lakh employees," he said.
