Parliament Question: Filling up of Board-level positions in CPSEs

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF PUBLIC ENTERPRISES ***** LOK SABHA UNSTARRED QUESTION NO. 2528 TO BE ANSWERED ON THE 3rd AUGUST, 2026 Filling up of Board-level positions in CPSEs 2528. Shri Kali Charan Singh: Will the Minister of FINANCE be pleased to state: (a) the details of sanctioned and filled posts of Chairperson, Chairman and Managing Director (CMD), Managing Director, Functional Directors and Independent Directors as on 30 June 2026, Central Public Sector Enterprises (CPSE)-wise; (b) the number of Board-level positions lying vacant for more than six months and more than one year, respectively; (c) whether meetings of the Boards, Audit Committees, CSR Committees and other statutory committees have been affected due to shortage of Independent Directors, if so, the details thereof; (d) whether the Government has fixed any timeline for completion of appointments through the appropriate selection process, if so, the details thereof; and (e) the steps taken to ensure that prolonged vacancies do not adversely affect governance, investment decisions, project execution and the financial performance of CPSEs? ANSWER THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY) (a) and (b) : Public Enterprises Selection Board (PESB) is responsible for the selection and recommendation of personnel to the posts of Chairman/CMD/MD (Level-I) and Functional Director (Level-II) in the CPSEs. The Government however, in some instances, may decide to fill a particular Board level post through modes other than PESB procedure such as Search-cum-Selection Committee (SCSC) procedure, on deputation basis, etc. or decide to keep particular Board level post(s) in abeyance. As per available information from PESB, in case of Board level posts in CPSEs being filled through PESB procedure, there are 22 vacant posts of full-time functional Directors (7 posts of CMD/MD and 15 posts of functional Directors) in various CPSEs having date of vacancy prior to 30.07.2026. Of these 22 posts, only three posts are vacant for more than six months. PESB has already furnished its recommendations for other vacant Board level posts having date of vacancy prior to 30.07.2026 for processing by the concerned administrative Ministry for approval/decision of the competent authority. As per available information, presently 75 positions of non-official (Independent) Directors are filled in various CPSEs as against the requirements of around 750 as per provisions of Companies Act, 2013 and SEBI (LODR) Regulations. The Search Committee has made recommendationsfor filling up around more 100 positions of non-official (Independent) Directors on the Boards of various CPSEs. (c) : The meetings of Board and Board Committees are required to be held as per relevant provisions of Companies Act, 2013 and/or SEBI (LODR) Regulations which also inter alia prescribe the constitution of Board Committees. The CPSEs are independent Board-driven entities functioning under the administrative jurisdiction of the concerned Ministries/Departments. The Board of Directors of CPSE and concerned administrative Ministry/Department is required to ensure compliance with these provisions to ensure smooth functioning of Board and Board Committees. (d) and (e) : It has been the constant endeavour of the Government to ensure that Board level posts in the CPSEs are filled up as per extant procedure in a timely manner. The Government has issued timelines for processing of the proposals for appointment and extension/non-extension to Board level posts in CPSEs which inter alia provide that the administrative Ministries/Departments are required to initiate the job description (JD) for a post and communicate the same to PESB within the stipulated time i.e. three months in advance of the stipulated period of one year of the date of occurrence of vacancy. If any Ministry/Department does not forward the JD for a post to PESB within the stipulated time, PESB initiates the JD one year before the occurrence of the vacancy and starts consultation with the Ministry/Department so that the selection process is started expeditiously. To track the status of both existing and anticipated vacancies and initiating timely action, PESB has developed a comprehensive vacancy tracking dashboard reflecting various milestones such as creation of vacancy, initiation of job description, advertising the post, screening/shortlisting the applications and convening the selection meetings. The Government has also issued guidelines regarding assignment of additional charge for manning vacant Board level posts in CPSEs so that regular functioning of CPSEs is not adversely affected. *****