Independent directors are important civil servants to ensure “corporate governance” in the Cpses: minister
Independent trustees are important civil servants to ensure “corporate governance” in CPSEs, Union Minister for Heavy Industries, Dr Mahendra Nath Pandey said at the trustees’ meeting hosted by the ministry on Thursday.
“Independent directors provide an objective view and safeguard the interests of stakeholders, particularly minorities. They provide independent judgment to the board on matters of strategy, performance and risk management,” he said.
One of the main functions of government as majority shareholder of CPSEs is to undertake regular performance reviews and assess their effectiveness in achieving the fundamental objectives for which they were established. The performance appraisal system, i.e. the Memorandum of Understanding (MoU) appraisal system, reflects the performance of a company, the minister added.
“Many CPSEs are going through a difficult period due to competition. It is high time we turned these challenges into opportunities for business growth. Completing projects on time is of the utmost importance in order to start generating revenue and avoid cost overruns.”
CPSEs must constantly work towards indigenization and help the nation become a global manufacturing hub. The Prime Minister’s mantra for all CPSEs is “Perform, Reform and Transform”, the Minister said.
Download the app to get 14 days of unlimited access to Mint Premium absolutely free!