Lok Sabha Question No. 2785 (UNSTARRED), answered on 2016-05-11
Subject: Extension of Services of CMDs/MDs
Ministry: PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
Asked by: RAVINDRA BABU  PANDULA

## GOVERNMENT OF INDIA

## MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS (DEPARTMENT OF PERSONNEL & TRAINING)

## LOK SABHA UNSTARRED QUESTION NO. 2785

(TO BE ANSWERED ON 11.05.2016)

## EXTENSION OF SERVICES OF CMDs/MDs

## 2785. DR. RAVINDRA BABU:

Will the PRIME MINISTER be pleased to state:

- (a) the  existing  guidelines  of  Public  Enterprises  Selection  Board  (PESB)  for  granting extension to CMDs of Public Sector Undertakings (PSUs);
- (b) whether granting extension of five years requires the clearance of PESB and if so, the details thereof; and
- (c) the  details  of  cases  for  grant  of  extension  received  by  PESB  from  CMDs/  MDs  of various PSUs and the status of these cases at present?

## ANSWER

Minister of State in the Ministry of Personnel, Public Grievances and Pensions and Minister of State in the Prime Minister's Office. (DR. JITENDRA SINGH)

- (a) & (b): As  per  guidelines  issued  vide  Public  Enterprises  Selection  Board  (PESB)'s communication No.13/07/2010-PESB dated 13.05.2011 and No.5/6/2010-PESB dated 28.06.2011,  the  concerned  administrative  Ministry/Department  processes  the  proposals  of extensions  of  CMDs  of  Central  Public  Sector  Enterprises  (CPSEs)  upto  05  years  except, wherein the cases where incumbent do not meet the prescribed performance benchmark.  In cases  where  performance  of  the  incumbent  CMD  is  below  benchmark,  a  Joint  Appraisal Meeting  is  held  by  PESB.    For  CMDs,  the  benchmark  prescribed  by  PESB  is  an  overall performance  score  of  80  out  of  the  maximum  of  100  in  the  Special  Performance  Report (SPR).  Further, cases having any individual score of less than 3 in Annexure 'A' and 'C' of the SPR, and/or an average MoU rating of less than 3 in Annexure 'B' are also required to be sent to PESB for Joint Appraisal.
- (c): During  the  last  03  financial  years,  the  following  two  proposals  for  extension  of services of CMDs in PSUs were received by PESB.

|   Sl. No. | Details of the cases                                                                                                                                                            | Status                                                                                                            |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|
|         1 | Shri S. Paulraj, Managing Director, HMT Watches Limited - Extension w.e.f. 29.09.2013 till 31.05.2015, i.e. till the date of his superannuation                                 | Extension recommended by PESB. Approved by the Competent Authority.                                               |
|         2 | Shri K.L. Dhingra, Chairman and Managing Director, Indian Telephone Industries Limited - Extension w.e.f. 07.04.2015 till 31.10.2015, i.e. till the date of his superannuation. | PESB had recommended his extension. However, the Competent Authority did not approve extension w.e.f. 05.06.2015. |

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