Parliament Question: Irregularities in PSUs of Steel

GOVERNMENT OF INDIA MINISTRY OF STEEL LOK SABHA UNSTARRED QUESTION NO. 360 FOR ANSWER ON 02.12.2025 IRREGULARITIES IN PSUS OF STEEL

360. SHRI KALI CHARAN SINGH:

Will the Minister of STEEL be pleased to state:

(a) whether the CAG or Vigilance reports have highlighted irregularities in PSUs under the Ministry of Steel, if so, the details of the steps taken to fix accountability and prevent recurrence;

(b) the steps that have been taken to improve transparency in procurement and CSR fund utilization; and

(c) whether the Government is considering reforms in the appointment and functioning of directors in steel PSUs, if so, the details thereof? ANSWER THE MINISTER OF STATE IN THE (SHRI BHUPATHIRAJU SRINIVASA VARMA) MINISTRY OF STEEL

(a) Identifying irregularities in Steel CPSEs is a routine activity carried out through the established mechanism and action is taken on the findings as per applicable rules to prevent recurrence.

(b) To enhance transparency in procurement, an end-to-end e-procurement system using the Government’s GeM platform, has been adopted wherever applicable. For procurement outside Government e-Marketplace (GeM), all Government procurement guidelines are adhered to including details of non-GeM tenders and contracts are placed on the Central Public Procurement Portal for public information. Procurement processes are regularly audited, and all observations or suggestions are suitably incorporated.

Transparency in Corporate Social Responsibility (CSR) fund utilization is ensured through a structured monitoring mechanism. CSR Nodal Officers and cross- functional groups at each Plant and Unit monitor projects from initiation to completion, supported by documented baseline data, well-defined milestones, and milestone- linked payments. Regular field visits and beneficiary feedback are integral to the process. Progress reports are consolidated quarterly and reviewed by the CSR Committee, which recommends corrective actions wherever necessary. Major projects undergo independent impact assessment or social audit. Oversight of CSR implementation is further ensured through regular review by the Board Sub-Committee on CSR.

(c) The appointment of Chairman and Managing Director (CMDs) and Functional Directors in Steel Central Public Sector Enterprises (CPSEs) is made as per Government guidelines, including open advertisement/circulation of vacancy, selection interview followed by CVC’s vigilance clearance and Government’s approval of recommended candidate. Post-appointment, the functioning of Director is reviewed as per laid down process.

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