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Govt guidelines on restructuring miniratnas

The government on Friday issued guidelines for restructuring the boards of public sector miniratnas and specified that government directors, finance director, and functional directors must be present when major decisions were taken on investments, expenditure or restructuring.

The guidelines said the boards of these miniratnas should be broadbased by inducting non-official part-time directors at the earliest.

The decisions on all major issues should preferably be unanimous, the guidelines said. If a unanimous decision was not possible, it should be taken by majority with at least two third of the directors present.

Following the delegation of decision-making authority, the first category of enterprises could incur expenditure up to Rs 3 billion without government approval. The second group of enterprises could incur capital expenditure on new projects, modernisation and purchase up to Rs 1.5 billion without government approval.

These public sector enterprises should establish transparent and effective systems of internal monitoring, including the establishment of an audit committee of the board with membership of non-official directors.

The recently announced enhanced autonomy and delegation of powers to eligible profit-making public enterprises -- the miniratnas -- would become effective only after the boards of these units were restructured.

The non-official part-time directors would be selected by a Search Committee comprising the chairman, Public Enterprises Selection Board; secretary, Department of Public Enterprises; secretary, administrative machinery; and some eminent non-officials.

The final selection of directors suggested by the Search Committee would be done by the administrative machinery.

EARLIER REPORT Govt grants miniratna status to 97 PSUs

UNI