New Delhi: State-owned firms should be subjected to governance standards on par with private players to ensure a level-playing field as "excessive scrutiny" by the CVC, CAG and the threat of a CBI probe often leads to stalled or over-cautious decision-making in PSUs, according to industry body CII.The suggestion is part of the Competitiveness Model developed by CII Research comprising six key elements to enable central public sector enterprises (CPSEs) to compete successfully in the global marketplace. "CPSEs must be subject to the same governance standards as private players. Excessive scrutiny from the Central Vigilance Commission (CVC) and the Comptroller Auditor General (CAG), coupled with the threat of Central Bureau of Investigation (CBI) often leads to stalled or over-cautious decision-making in CPSEs. Operational independence comprises independence in operational decision-making and in personnel related matters such as recruitment, promotion, compensation and other terms of employment. "An independent and empowered board will transform CPSEs from being ministry-driven to Board-driven.

Source: Economic Times November 17, 2019 08:15 UTC