Chief executives of ailing central public sector undertakings (CPSU) would now be entitled to have cash incentives of up to Rs 10 lakh and a higher retirement age of 65 years if the company achieves a turnaround.
The Union Cabinet, which approved the proposal on Thursday, decided that any incumbent chief executive or functional director who has contributed "exceedingly well" in the turnaround of the sick company may be considered for relaxation in retirement upto 65 years of age.
The proposal was based on recommendations made by the board for reconstruction of public enterprises (BRPSE). The board has recommended the revival of over 40 public sector enterprises. It had recommended that chief executives should be given ample time to implement revival packages.
Information and Broadcasting Minister Priya Ranjan Dasmunsi said the extension would be subject to the review of performance to be conducted by the secretary of the administrative ministry under which a PSU is functioning.
“Besides pay, allowances and perks attached to the post, a lump-sum incentive upto a maximum of Rs 10 lakh out of the profits of the CPSUs may also be considered, provided the CPSU has achieved or executed all projected targets of the revival plan in a timely manner," an official statement said.
The administrative ministry concerned will take a decision in this matter on the basis of broad guidelines to be formulated by the Department of Public Enterprises in consultation with the Department of Expenditure and the Department of Personnel and Training, it said.
In case it is decided to appoint a new chief excutive or a functional director and no application is received, current chief executives could apply for a minimum tenure of three years and a maxium age of 62 years.
In such cases serving or retired CPSE executives, government servants and private sector executives also should be considered, the government said.