Non-performing PSUs in for a major revamp

The non-performing heads of Public Sector Units (PSUs) in the state would now have to look for other opportunities as the Industries Department is planning  a major revamp.


A list of highly qualified professionals would be prepared to replace the existing managing directors. Public Sector Restructuring and Internal Audit Board (RIAB) has been entrusted with the task of preparing a panel of experienced and qualified hands.


It has also been decided to appoint only those who are between the age group of 40 to 50 years and having a BTech degree with MBA and 15 years of experience. It is also learnt that around 12 managing directors of PSUs would be replaced  immediately after the list is prepared.   RIAB secretary K Padmakumar said that the managing directors of the companies will be allowed to continue depending on their performance. The performance of each company would be evaluated for a year and a decision will be taken whether to replace the MDs or allow them to continue in the post.   There are several PSUs which are poor performers and supported by the government for social and political reasons.



For ensuring better performance, transparency and efficiency of PSUs, the State Government is in the process of implementing MoU system which can monitor the performance of each company.


Padmakumar said that a Public Sector Enterprises Board (PSEB) will be constituted for executing the MoU system.


An MoU will be signed by the Board and each PSU will ensure responsibility and accountability for the managing directors of each company for the performance.


RIAB is now in search of qualified persons in the fields of chemical, general engineering, electrical equipment, textiles, electronics, ceramics and refractories, mineral exploration, wood-based,  development and infrastructure and traditional and welfare sectors.


Those appointed would be given an extension for two more years depending upon their performance in the first year. With the new system coming into force, the heads of each unit will have to take the responsibility of solving all the issues without passing it on to the government. There are around 44 PSUs in the state which will witness a sea change with the entry of new faces to improve the performance.