Governance manual for State PSUs

Chief Minister Naveen Patnaik has asked the Department of Public Enterprises along with other administrative departments to ensure that the corporate governance manual (CGM) for the State public sector undertakings (PSUs) is implemented fully and efficiently.

Naveen released the CGM for the State PSUs at a function here today. He said that during the implementation process, if required, modifications may be made without violating the basic spirit of the manual. The CGM has prescribed many compliances on the part of the State PSUs and also on the administrative department and the department of public enterprises.

Stating that the PSUs have a pivotal role in the economic growth of the State and in providing public utility services, the Chief Minister said that since the State Government had invested a huge amount of public resources in the PSUs, it is necessary to make them effective for achieving social development and infrastructure objective as per their mandate.

In a scenario of increased globalisation, the State PSUs need to be able to meet the challenges of competition while looking into the aspirations of the people, he said.

The Chief Minister said that as part of the public enterprise reform project, a number of initiatives was taken over the past decade. These reforms have resulted in the identification of a core group of PSUs which have been strengthened during the process, he added.

The CGM for the PSUs has been developed after many rounds of consultation with PSUs and the administrative department, Naveen said, adding that the foundation of good corporate governance depends on autonomy and accountability.

Addressing the function, Minister for Public Enterprises AU Singhdeo said that lack of competition and rapid changes in technology besides growing business complexities are the major challenges faced by the PSUs. Besides, lack of independence in decision-making also comes in the way of growth of the PSUs, he said.

Among others, Chief Secretary TK Mishra, Development Commissioner SP Nanda, Industry Secretary Sourav Garg and senior officials attended the meeting.

A memorandum of understanding (MoU) was signed between the Water Resources Department and the Orissa Construction Corporation (OCC) for the implementation of CGM.