**Executive Summary**
This document presents the Ministry of Power's response to an unstarred question raised in Lok Sabha (No. 3024), answered on December 18, 2025, regarding the engagement of the Boston Consulting Group (BCG) in the power sector. The question pertains to alleged irregularities, the appointment process of BCG, and potential undermining of existing appraisal parameters. The Ministry states that there were no irregularities, BCG was competitively selected, and the existing parameters are diligently followed.
**Key Points / Main Content**
* **Irregularities in Promotion Policy:**
* No irregularities have been reported in the promotion policy of Central Public Sector Enterprises (CPSEs), including Power Finance Corporation (PFC), under the Ministry of Power.
* PFC is the only CPSE of the Ministry of Power that appointed BCG to study overall business strategy, including manpower planning.
* The promotion policy in PFC was amended and finalized after deliberation and discussion with the Board of Directors, following due process.
* **BCG Appointment:**
* BCG was selected to study the overall business strategy of the company through a competitive bidding process on the GeM portal.
* **Assessment Model:**
* The Department of Public Enterprises (DPE) prescribes parameters related to Annual Appraisal Reports, which are diligently followed by PFC.
* **Review of BCG Engagement:**
* In view of the above, no review of BCG's engagement is necessary.
**Impact Analysis**
**Ministry of Power**
* **Impact:** The Ministry is required to respond to parliamentary questions regarding its policies and the engagement of consultants.
* **Action Required:** No further action is required based on the answers provided.
**Power Finance Corporation (PFC)**
* **Impact:** PFC's processes related to promotion policy, consultant selection, and adherence to DPE guidelines are scrutinized.
* **Action Required:** PFC should continue to follow due process in policy formulation, consultant engagement, and compliance with DPE parameters.
Key Entities Referenced
Ministry of Power: The primary subject of the document, answering questions about engagement in the power sector.
Boston Consulting Group (BCG): Consulting firm involved in the policy and assessment criteria in the power sector.
Power Finance Corporation (PFC): Public sector undertaking involved in the policy, assessment criteria.
Public Sector Undertakings (PSUs): Entities affected by the policy and assessment criteria.
Department of Public Enterprises (DPE): Department that prescribes appraisal parameters.
GOVERNMENT OF INDIA
MINISTRY OF POWER
LOK SABHA
UNSTARRED QUESTION NO.3024
ANSWERED ON 18.12.2025
ENGAGEMENT OF BCG IN POWER SECTOR
3024. DR. MALLU RAVI:
Will the Minister of POWER
be pleased to state:
(a) whether the Government is aware of serious irregularities in the revised promotion
policy and assessment criteria formulated with the involvement of Boston Consulting
Group (BCG) in power sector Public Sector Undertakings (PSUs) including the Power
Finance Corporation (PFC) and if so, the details thereof;
(b) whether the Ministry has examined this revised policy and whether all Independent
Directors and Government Nominee Directors on the Boards of these PSUs consented
to its adoption and if so, the due process followed and the basis of approval;
(c) whether BCG was appointed without competitive bidding and if so, the reasons
therefor;
(d) the reasons for prioritizing BCG’s assessment model over the existing Memorandum
of Understanding (MoU) and Department of Public Enterprises (DPE) prescribed
appraisal parameters thereby undermining established norms; and
(e) whether the Ministry proposes to review the engagement of BCG and its role in policy
formulation in PSUs under its administrative control and if so, the details thereof?
A N S W E R
THE MINISTER OF STATE IN THE MINISTRY OF POWER
(SHRI SHRIPAD NAIK)
(a) & (b) : There is no irregularity reported in the promotion policy of Central Public
Sector Enterprises (CPSEs) including Power Finance Corporation (PFC) under Ministry
of Power. PFC is the only CPSE of the Ministry of Power which appointed Boston
Consulting Group (BCG) for studying overall business strategy including manpower
planning of the company. The promotion policy in Power Finance Corporation was
amended and final formulation of the same was made after series of elaborate
deliberation and discussion with Board of Directors in accordance with due process.
(c) & (d): BCG was selected for studying overall business strategy of the company
through a competitive bidding process conducted on the GeM portal. Department of
Public Enterprises (DPE) prescribes parameters related to Annual Appraisal Reports
which are diligently followed by PFC.
(e): In view of above, the question does not arise.
********