Parliament Question: Appointments in PSUs

Executive Summary: This document addresses Lok Sabha's concerns regarding leadership appointments in Public Sector Undertakings (PSUs) like BPCL, HPCL, and NTPC. It clarifies the selection processes for Chairman and Functional Director positions, the role of the Public Enterprises Selection Board (PESB), and the government's approach to addressing leadership gaps. The document also mentions efforts towards professional development and succession planning within CPSEs, following an advisory issued in January 2019. Key Points / Main Content: * **Appointment Process for Top PSU Positions:** * Appointments are based on criteria set by the PESB, considering internal, sectoral, external, Central Government, Private Sector and State PSU candidates (up to 12 shortlisted). * PESB recommendations are based on candidate performance in interviews, emphasizing managerial capabilities, leadership qualities, vision, track record, and suitability. * **PESB Recommendations and Search-cum-Selection Committee (SCSC):** * For CMD positions in BPCL, HPCL, and NTPC, the PESB sometimes did not recommend any candidate, advising the Ministry to use the SCSC or other appropriate selection methods. * The SCSC constituted for the post of CMD, HPCL, has recommended a candidate from the private sector for appointment. * **Addressing Leadership Gaps:** * Recruitment, promotion, transfer, and training for below Board Level positions are managed by individual CPSEs according to their HR policies. * The Government issued an advisory in January 2019 on Professionalization of below Board level management in CPSEs, encouraging leadership development and succession planning. * Training and capacity-building programs are conducted for PSU officers under the Capacity Building Commission. Impact Analysis: * **Public Sector Undertakings (PSUs):** * Impact: CPSEs are responsible for implementing the advisory on professionalizing management below the Board level. They also need to adhere to the established recruitment and selection processes for top positions as defined by PESB and SCSC. * Action Required: CPSEs should review and update their HR policies to align with the government advisory and prioritize leadership development and succession planning. * **Senior Officials in PSUs:** * Impact: Senior officials are subject to the PESB selection criteria and interview process for top positions. They also benefit from training and capacity-building programs aimed at enhancing their skills and leadership abilities. * Action Required: Senior officials should actively participate in professional development opportunities and prepare for potential leadership roles through succession planning initiatives. * **Public Enterprises Selection Board (PESB):** * Impact: PESB plays a crucial role in shortlisting and recommending candidates for top positions in PSUs, emphasizing managerial capabilities, leadership qualities, vision, track record, and suitability. * Action Required: PESB should continue to assess candidates based on the established criteria and ensure a fair and transparent selection process. * **Ministry of Petroleum and Natural Gas:** * Impact: The Ministry is responsible for overseeing the appointment of top executives in PSUs under its purview and for implementing policies related to professional development and succession planning. * Action Required: The Ministry should monitor the implementation of the advisory on professionalization of management in CPSEs and ensure that PSUs have effective leadership development programs in place.

Key Entities Referenced