Govt notifies norms to hire private sector professionals in CPSEs

New Delhi: The Centre has notified new rules to allow hiring of private sector professionals in senior positions at Central Public Sector Enterprises (CPSEs), after amending a nearly three decade-old resolution.

Candidates from state public sector enterprises and the private sector, subject to fulfilling the eligibility criteria, will be considered as non-internal candidates for a period of five years, as per the new rules issued on Friday by Personnel Ministry.

The Union Cabinet had on June 1 given ex-post facto approval to the proposal of having private sector professionals by amending an over 28-year-old resolution of Public Enterprises Selection Board (PESB).

The amendment will continue to provide a wider pool of professionals for selection.

The central public sector enterprises would benefit from the skill-sets and domain expertise of those coming from the state public sector enterprises as well the private sector. It would also ensure that the senior management in CPSEs gets the benefit of the perspective gained both within and outside, as per a government release issued earlier.

The change in the government's resolution issued in March 1987 has been effected to also include an official from the Prime Minister's Office to be part of a panel to recommend candidates for the post of chairman and members of the government's headhunter -- PESB.

The Cabinet Secretary-led Committee will have Additional Principal Secretary to the Prime Minister as one of the members. The panel will continue to have top bureaucrats of three key departments -- Secretary (Personnel), Secretary (Finance) and Secretary (Public Enterprises) -- as its members.

Earlier, there was no nominee of the PMO on the panel that recommends the names of top-level appointees, including Chairman, Managing Director or Chairman-cum-Managing Director, and Functional Director of central public sector undertakings.

The PESB consists of a chairperson and three full-time members.

"The chairperson or members shall hold office for a period of three years from the date of assumption of charge or until attainment of the age of 65 years or until further orders, whichever is earliest," as per the new norms.