Thursday, 27 July 2017

Vacant posts of CMDs/EDs

As per available information, presently there are 139 Board level posts (46 posts of Chief Executives and 93 posts of Directors) lying vacant in various Central Public Sector Enterprises (CPSEs). Out of these 139 posts, 114 posts are vacant for a period less than two years and remaining 25 posts are vacant for more than two years. Filling up of Board level posts in CPSEs is a continuous process. The reasons for these vacant Board level posts include, (i) occurrence of unforeseen vacancies due to resignation/vertical shift or death of an incumbent, (ii) non-availability of suitable candidates, (iii) court cases, and (iv) decision of the administrative Ministry to keep a particular Board level post in abeyance, etc. So far as the posts of Executive Directors in CPSEs are concerned, generally these posts are at below Board level and are filled by the concerned CPSEs themselves.

The Government has laid down the following criteria for candidates from private sector to be considered for selection to Board level posts in CPSEs.

Category of CPSE for which selection is to be made
Annual Turnover* requirement for consideration of a candidate from Private Company
Schedule A
Rs. 10,000 crore or more
Rs. 5,000 crore or more
Rs. 2,000 crore or more
Rs. 1,500 crore or more
Schedule B
Rs. 1,000 crore or more
Rs. 750 crore or more
Schedule C

Rs. 500 crore or more
Schedule D

Rs. 250 crore or more
The average audited annual turnover of three financial years preceding the calendar year in which the post is advertised shall be considered for applying the approved limits. The other criteria for candidates from private sector are same as for the candidates from other categories, viz., CPSEs, State Public Sector Enterprises & Government.

To implement the reforms in Banking, Government has decided to separate the post of Chairman & Managing Director in Chairman (Non-executive) and Managing Director & Chief Executive Officer (MD & CEO). The Government has recently appointed Non-Executive Chairman in the Public Sector Banks, namely, Bank of Baroda, Bank of India, Canara Bank, Indian Bank and Vijaya Bank. The Government has also approved the guidelines regarding selection of MD & CEO in five Public Sector Banks, viz. Bank of Baroda, Bank of India, Canara Bank, IDBI Bank and Punjab National Bank. As per these guidelines, candidates from Public Sector Banks as well as Private Sector Banks having at least 15 years of mainstream banking experience of which one year at board level within the age group of 45-57 years are eligible to apply for the post. Accordingly, post of MD & CEO in these 5 Banks was advertised and 3 candidates from Public Sector Banks and 2 candidates from Private Sector Banks were appointed.

This information was given by Minister of State in the Ministry of Heavy Industries and Public Enterprises Shri Babul Supriyo in reply to a written question in the Rajya Sabha today (July 26, 2017).


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