Economy / Public Sector - Evolution, Reforms and Performance / Ad-hoc Group of Experts (AGE) Report
Ad-hoc Group of Experts (AGE) Report
Ad-hoc Group of Experts (AGE) Report on Empowerment of Central Public Sector Enterprises (CPSEs):
- Formation and Leadership:
- The AGE was set up in 2004, with Arjun Sengupta leading the group of experts.
- Recommendations in 2006:
- Greater Autonomy: The report recommended providing greater autonomy for public sector units.
- Independent Boards: Suggested that central PSUs should have truly independent boards empowered to make decisions on various aspects, including mergers, joint ventures, pricing, exports, appointments, selection of dealers, promotions, and employee transfers.
- Reduced Ministry Interference: Proposed that ministries should refrain from interfering in the functioning of PSUs under them. PSU managements should be accountable to the board rather than the ministry.
- Sector-Specific Supervision: Advocated for sector-specific supervisory boards for effective supervision, limiting ministry reviews to twice a year.
- Limited CAG Supplementary Audit: Recommended that supplementary audits by the Comptroller and Auditor General of India (CAG) for PSUs should be an exception rather than the rule, as it delays the publication of audited accounts required by SEBI.
- Reworking Accountability to Parliament: Called for reworking the accountability of PSUs to Parliament to prevent compromising sensitive trade data and impeding their functioning as commercial enterprises.
- Government Response:
- The government accepted some recommendations, particularly those related to enhancing the financial powers of Navratna, Miniratna, and other profit-making CPSEs.
- Remaining recommendations on ownership issues, government company audits, constitutional aspects (Article 12), parliamentary accountability, vigilance, and CPSE management are under examination.
The AGE Report aimed at empowering CPSEs by reducing bureaucratic interference, enhancing autonomy, and optimizing their commercial functioning. Implementation of these recommendations would contribute to a more efficient and independent public sector.
