SCOPE organized a two-days Corporate Communication Summit on the theme “Learning New Strategies – Scaling Newer Heights” which was attended by a large number of participants from PSUs. On this occasion SCOPE Corporate Communication Excellence Awards were also presented.
Mr. Nirmal Sinha, Chairman, SCOPE in his inaugural address said that good work done by public sector should be effectively projected by corporate communication professionals. He advised PSUs to give top most importance to corporate communication departments.
Dr. U.D. Choubey, Director General, SCOPE advised PSUs to develop a blue print document on Communication Strategy for effective communication to build a brand image of the organization. He announced that SCOPE will shortly organize an exclusive programme on Media Spokesperson in Public Sector.
The outcome of the two days Summit shall help PSUs to further strengthen their corporate communication departments.
Among others, Padma Shri Dr. K.K. Aggarwal, Honorary Secretary General, IMA, Mr. Sudhir Chaudhary of Zee News and Mr. D.D. Mishra, Director (HR), ONGC also spoke in the inaugural session.
SCOPE Academy of Public Sector Enterprises
SCOPE Academy of Public Sector successfully completed the first programme. Dr. U.D. Choubey, Director General, SCOPE gave certificates to the participants.
SCOPE Organizes Workshop on Global Climate Change and Sustainable Development Goals
SCOPE organized a two-day Workshop on “Preparing for Global Climate Change and Sustainable Development Goals” here today which was attended by a large number of senior executives of public sector enterprises.
Speaking on the occasion, Mr. Nirmal Sinha, Chairman,SCOPE said that climate change is the greatest environment threat mankind has ever faced. Mr. Sinha said the Millennium Development Goals that were in place earlier have been replaced by the Sustainable Development Goals with the aim of guiding the international community and national governments on a pathway towards sustainable development for the next fifteen years.
Mr. Ravi Shankar Prasad, IAS, Joint Secretary, Ministry of Environment, Forest & Climate Change in his address informed that the UN General Assembly adopted 17 Sustainable Development Goals (SDGs) and its 169 Targets in September 2015 as part of 2030 Agenda on Sustainable Development. To monitor the implementation of SDG Targets, indicators are being developed at the global level. In order to achieve SDGs, global community needs to provide finance, technology and capacity building avenues. Incremental finance required to implement SDGs is crucial, he added.
Mr. Damandeep Singh, Director, CDP India & Lead Resource Person shared the programme perspective.
SCOPE Public Sector Academy Opens with First Batch
The first batch of 25 participants drawn from various public sector enterprises started two-weeks capacity building programme under the aegis of Academy of Public Sector Enterprises (APSE) today. Dr. Madhukar Gupta, IAS, Additional Secretary, Department of Public Enterprises inaugurated the first programme.
Highlighting the objective of the Academy, Dr. U.D. Choubey, Director General, SCOPE informed that the two-weeks programme has been structured to give micro and macro aspects of various issues in public sector enterprises, both in India and abroad. The Academy is different than the captive training centers in various public sectors where specified training is imparted exclusively for the area of functioning of a particular public sector whereas the APSE will give broad picture of all the public sector enterprises under one roof which will cover different sectors like oil & gas, power, manufacturing, construction, communication etc. Such a course will provide overview of public sector enterprises, he added. The faculty has been drawn from experts in the area.
The participants shall be subjected to rigorous and vigorous training programme with proper system of evaluation of their performance.
This will be a continuous process and second batch will start shortly for which public sectors have started giving their nominations.
SCOPE Organizes Two-days Conference on Labour Law Reforms
Two-days Conference on Management of Contract Labour and Labour Law Reforms was organized by Standing Conference of Public Enterprises (SCOPE) where large number of representatives from public sector enterprises participated. Several aspects of contract labour and possible reforms for their minimum wages and social security were discussed. On this occasion, dignitaries also released the Special Issue of Kaleidoscope Magazine on Labour Law Reforms.
While speaking in the inaugural session, Dr. U.D. Choubey, Director General, SCOPE complimented Government of India for their attempt to build on over 40 number of the laws and regulations with regard to labour to practically four regulations in line with the speech delivered by Prime Minister on the occasion of Independence Day celebrations last year wherein he emphasized for “clear and precise” law.
The programme was inaugurated by Prof. M. Sridhar Acharyulu, Information Commissioner, Central Information Commission. Mr. Bipin Mallick, IAS, Additional Secretary & DG (Labour Welfare), Ministry of Labour & Employment also addressed the inaugural session.
SCOPE organizes Conclave on RTI
Standing Conference of Public Enterprises (SCOPE) organized a two-day Conclave on RTI Act, 2005 of Appellate Authorities & PIOs of CPSEs here today. Speaking on the occasion, Dr. U.D. Choubey, Director General, SCOPE said that RTI Act has improved transparency and accountability and PSU brand in domestic and international market. He said RTI Act has empowered the people of the country to secure information under the control of public authority.
Dr. Choubey informed that public sector has adopted RTI Act in letter and spirit. However, public sector enterprises are accountable to large many complex and heterogenous checks and balances and RTI Act is another addition in the system. Therefore, multilayer system of checks and balances need convergence.
Mr. H. Sekhar Das, Assam State Chief Information Commissioner and Mr. S.B. Borgohain, Director, NEEPCO also addressed the Conclave. The Conclave was attended by a large number of PIOs/CPIOs of public sector enterprises.
SCOPE for development of villages under CSR
Speaking in a National Seminar on “Is CSR Working in India?”, organized by Mature Media Pvt. Ltd at the Constitution Club, Dr. U.D. Choubey, Director General, SCOPE emphasized for better implementation of CSR funds allocated by Central Public Sector Enterprises to NGOs. He mentioned that 2% mandatory CSR provision has been taken by PSEs in letter and spirit.
Public sectors are implementing it through a robust mechanism which include inter alia Board approved policy. They take up baseline survey, identify the needs but the real issue comes with regard to implementing agency. Dr. Choubey mentioned that in order that the benefits of CSR fund reaches at the end point, it would be better that all allocated funds from CPSEs should be subjected to accountability check for NGOs under RTI, CAG and social audit.
SCOPE Organizes Seminar on Cyber Security in PSUs
SCOPE organized Seminar on Cyber Security in Public Sector Enterprises which was addressed by Dr. Gulshan Rai, National Cyber Security Coordinator & Special Secretary, PMO, Dr. U.D. Choubey, Director General, SCOPE and Ms. Rama Vedashree, CEO, DSCI.
SCOPE for Succession Planning of Women Employees in Public Sector
SCOPE organized a two-day Workshop on “Leadership Development for Women Executives” for middle and senior middle level management women employees in public sector here today. Ms. Stuti Kacker, IAS, Chairperson, National Commission for Protection of Child Rights inaugurated the Workshop. Dr. U.D. Choubey, Director General, SCOPE delivered Opening Address. Mr. Ashok Bhatt, Director, Mindshare HR Consultancy and Ms. Kirti Tiwari, President Apex, WIPS also addressed the inaugural session.
While speaking on this occasion, Dr. U.D. Choubey, Director General, SCOPE emphasized that there is immediate need for capacity building so that women employees are elevated to higher level including Board level positions in public sector enterprises. He informed that the number of women employees at Board level in PSEs is lower as compared to outside India.
Hon'ble President Addresses 7th Public Sector Day and Presents SCOPE Excellence Awards
Shri Pranab Mukherjee, Hon’ble President of India presented the SCOPE Excellence Awards and addressed the top echelons of India’s economic policy makers, Chief Executives, Directors and Senior Executives of Public Sector Enterprises on the occasion of 7th Public Sector Day Celebrations jointly organized by Standing Conference of Public Enterprises (SCOPE) and Department of Public Enterprises (DPE) here today.
Shri Anant Geete, Union Minister of HI&PE, Shri G.M. Siddeshwara, Hon’ble Minister of State (HI&PE), Shri Ameising Luikham, IAS, Secretary, Department of Public Enterprises, Shri R.G. Rajan, Chairman, SCOPE & CMD, Rashtriya Chemicals & Fertilizers Ltd, Shri R.G. Rajan, and Dr. U.D. Choubey, Director General, SCOPE also addressed the gathering, while Shri Nirmal Sinha, Vice Chairman, SCOPE & CMD, Handicrafts & Handlooms Export Corporation, was present on the dais.
Gold trophies of SCOPE Excellence Awards in the Institutional Categories were presented to Oil & Natural Gas Corporation Limited, GAIL (India) Limited, Hindustan Aeronautics Ltd, Neyveli Lignite Corporation Limited, WAPCOS Limited, SJVN Limited, THDC India Limited, Goa Shipyard Limited, Indian Renewable Energy Development Agency Limited, NTPC-SAIL Power Company, BEML Limited, National Seeds Corporation Ltd, Artificial Limbs Mfg. Corporation of India, Petronet LNG Limited and Cement Corporation of India.
The SCOPE Excellence Awards (Gold Plaques) in the Individual Leadership Category were given to Mr. S. Varadarajan, CMD, Bharat Petroelum Corporation Ltd, Mrs. Nishi Vasudeva, former CMD, Hindustan Petroelum Corporation Ltd and Mr. R.K. Gupta, CMD, WAPCOS Limited. Ms. Vartika Shukla, Executive Director, Engineers India Ltd bagged the Outstanding Woman Manager in PSEs Award.
President Graces 7th Public Sector Day Celebrations and Presents SCOPE Excellence Awards
Hon’ble President of India Shri Pranab Mukherjee presented the SCOPE Excellence Awards and addressed the top echelons of India’s economic policy makers, Chief Executives, Directors and Senior Executives of Public Sector Enterprises on the occasion of 7th Public Sector Day Celebrations organized by Standing Conference of Public Enterprises (SCOPE) and Department of Public Enterprises (DPE) here today.
Union Minister of HI&PE Shri Anant Geete, Minister of States, HI&PE, Shri G.M. Siddershwara, Secretary, DPE, Shri Ameising Luikham, Chairman, SCOPE & CMD, RCF, Shri R.G. Rajan, and Director General, SCOPE, Dr. U.D. Choubey also addressed the gathering, while Vice Chairman, SCOPE & CMD, HHEC, Shri Nirmal Sinha, was present on the dais.
Shri Pranab Mukherjee said that the contribution of Indian Public Sector in ensuring balanced economic and industrial development cannot be over-emphasized. The sector has grown exponentially since independence in all metrics of measurement, be it in terms of numbers, diversification, volume of investment and global presence. During 2014-15, PSEs registered a growth of 7% in Paid up Capital & Capital Employed; 10.5% in total investment and 20% in total market capitalization as compared to the previous year. On an average during the last 3 years from 2012-13 to 2014-15, operating PSEs could earn an overall net profit of Rs. 1,15,426 crore, generate Gross Turnover/ Revenue of Rs. 20,02,591 crore and pay dividend of Rs. 57,115 crore. The contribution of the PSEs in the nation’s economy has, thus, continued to be significant year after year.
Referring to the Prime Minister and the Governments outlined ambitious and clear vision for inclusive development of the country, programs like "Make in India”, "Skill Building”, "Digital India” and "Swachch Bharat” are the cornerstones for the future development of India. The President expressed happiness to note the PSE’s contributions towards these national priority areas. He complimented SCOPE for bringing out a comprehensive Compendium showcasing the CPSEs contributions towards these initiatives. Regarding Swachch Bharat Abhiyan, he said that the CPSEs may like to consider taking up a common cause or issue aimed at upliftment of the country under their CSR action plan every year. This would possibly result in optimum utilization of available resources while at the same time allowing CPSEs the flexibility to choose different common causes to be undertaken under CSR every year depending upon the broader thrust areas identified by Government, the President noted.
The President however advised that, in order to face the challenges of a globally integrated economy, it is equally essential that our CPSEs collaborate and pool their resources to face and overcome competition. The financial, technical and manpower resources of our CPSEs need to be shared to enable better and more optimal solutions in increasingly customer driven markets. It is heartening to note that CPSEs have continued to be model employers and have maintained ethical standards in their operations in the face of ever increasing competition.
Welcoming the President, Union Minister of HI&PE Shri Anant Geete said that it is a matter of great pride for the Awardees of the SCOPE Excellence Awards to receive it from the hands of the Hon’ble President. Speaking about the role of PSEs in the nation building, he said that PSEs since inception have been an active player in the socio-economic development of the nation. He hoped that PSEs shall also play an aggressive role in Government’s program of Make in India.
Speaking on the occasion, Minister of States, HI&PE, Shri G.M. Siddershwara said that, Public Sector has always placed a major thrust on education, training and upgradation of skill-sets of people. They should provide ample opportunities for the professional growth of young employees who join their enterprises with great aspirations. He complimented SCOPE for opening of the Academy for Public Sector Enterprises to train young induction level executives and equip them with necessary skills which will necessarily help Public Sector in the long run.
Shri Ameising Luikham, Secretary, DPE, in his address said that DPE as a nodal agency for CPSEs, feels obligated towards enhancing CPSEs performance overall. Speaking about the Public Sector Day celebrations, he said that the event is not only for rejoicing the achievements but also taking a pledge that we all together as Public Sector Fraternity would actively participate in the inclusive and sustainable development of the nation.
Shri R. G. Rajan, Chairman, SCOPE in his welcome address said Public Sector Day celebrate true spirit and commitment of Public Sector to take India on a higher growth trajectory and human development. He said many Public Sector Enterprises have performed admirably well in the cutting edge competitive environment and are committed to promoting technological innovations, R&D, CSR while protecting the environment.
Dr. U. D. Choubey, Director General, SCOPE in his vote of thanks reaffirmed the commitment of the Public Sector for economic growth and social upliftment. He highlighted the new initiative of SCOPE to establish Public Sector Academy that shall provide integrated training and capacity building to the critical mass in PSEs which in long run shall develop a cadre of Public Sector professionals in line with All India Services. Dr. Choubey also emphasized for further reforms in Public Sector in line with OECD and other Asian and South East Asian countries where the trend is to consolidate sovereign holding in SOEs.
The event was attended by large number of Chief executives, Senior Executives from various PSEs and Senior Government Officials.
U D Choubey: Reforming public sector corporate governance
The corporate world has witnessed continued pressure for professionalisation of boards in the interests of better governance. Accordingly, the governance structure of corporations is increasingly getting aligned with the best practices in corporate governance. Good corporate governance ensures transparency, integrity, responsibility, accountability and long-term strategic plans, effective risk management plans and corporate social responsibility, or CSR. The term corporate governance has acquired special significance in the case of India's public sector enterprises (PSEs).
PSEs' corporate governance practices are robust, resting on four pillars - fairness, transparency, accountability and responsibility. Well before the corporate governance code was put in place, they were required to comply with several rules and regulations under an elaborate system of Parliamentary and governmental control. They have gone the extra mile and taken structured initiatives, beyond mandatory stipulations, for the benefit of various stakeholders. There have been several systems and mechanisms of compliance for ensuring accountability and good governance in PSEs.
Presently, apart from Parliament, PSEs are accountable to other authorities, such as the Comptroller and Auditor General of India, Central Vigilance Commission, Competition Commission of India and the Right to Information Act, etc. Besides, listed companies are governed by Sebi norms. These checks and balances have assured high levels of transparency in PSE functioning, and contributed to the greater investor confidence enjoyed by PSEs. This can be validated by the fact that a handful of PSEs (46 listed companies, i.e. one per cent of the total number listed on the Bombay Stock Exchange) account for around 15 per cent of BSE's market capitalisation.
PSEs have well-structured vigilance departments with network units across various regions with the mandate to disseminate principles and practices related to integrity and transparency across all levels of the organisation. More than 100 PSEs have also signed an Integrity Pact with Transparency India International. Under the MoU system, PSEs undertake to achieve targets set out in the agreement between their managements and the Government of India. Emphasis is placed on giving them operational autonomy to face competition, at the same time ensuring accountability in operations. The Right to Information Act is applicable to all public authorities and is also applicable to PSEs - but not to the private sector, thus denying PSEs a level playing field.
As guardians or trustees of public money, they have upheld high values to achieve the objectives for which they have been established. Their contribution to the economy can be judged from the fact that 290 PSEs with a total investment of Rs 9.92 lakh crore earned a net profit of Rs 1.29 lakh crore in 2013-14. Their turnover of Rs 20.61 lakh crore amounts to some 20 per cent of India's GDP. They contributed Rs 2.20 lakh crore to the central exchequer by way of dividend, taxes, etc. In addition, the contribution of central PSEs, or CPSEs (by way of taxes and duties, net profit, dividend, disinvestment proceeds) has increased by 149 per cent in the past decade (2004-05 to 2013-14).
Besides, PSEs have played a leading role in making positive interventions in social upliftment programmes. They are implementing their CSR activity in project mode, addressing the socio-economic development, environment, education and drinking water needs of surrounding communities. Development of backward regions, creation of industrial and social infrastructure, creating jobs for a large number of people, and production of essential products and services at a reasonable price speaks volumes of PSEs' CSR activities.
The commitment of the CPSEs towards CSR can be seen from the fact that of the top 100 companies' contributions to CSR activities, 25 are CPSEs. PSEs have been imparting the best practices in corporate governance. However, there has always been a tendency to term them non-compliant in some parameters of corporate governance. One yardstick of non-compliance that is pointed out is the appointment of independent directors. Before we comment on this non-compliance, we need to first understand how independent directors are appointed in a CPSE.
The institution of independent director has emerged as the cornerstone of corporate governance. It requires boards to be properly structured with adequate non-executive and independent directors to ensure independence and objectivity. They are expected to exercise oversight on the functioning of the board and board committees - the audit committee, remuneration committee, etc - based on best practices of governance and ethical standards.
At present, independent directors for 'Ratna' CPSEs (i.e. Maharatna, Navratna and Miniratna) are recommended by the administrative ministry to the Public Enterprises Selection Board, or PESB. The selection is then made by a search committee which includes the secretary, department of personnel and training as chairperson of the committee; the secretary, department of public enterprises; secretary of the administrative ministry, and two non-official members. The list of shortlisted candidates is then sent to the administrative ministry and, finally, for the approval of the Appointments Committee of the Cabinet. Since PSEs have no role in the selection of independent directors or audit committees or remuneration committees, it is unjust to hold PSEs responsible for non-compliance with Sebi regulations governing their appointments.
A professionally run organisation having a competent board and full operational autonomy can perform optimally and its members can be held accountable through a structured performance evaluation system. PSEs run on professional lines. Several Indian PSEs have become important players in the global market. To help PSEs to embrace global business standards and to improve their performance in a transparent and ethical manner, issues which are presently not within their control need to be addressed.
The world over, notable corporate governance reforms have been undertaken to strike the right balance between autonomy and state control. Some developed countries have created independent sovereign committees that are not under the control of the administrative ministry, to monitor implementation and succession planning and to select independent directors. In India also, there is a need to review corporate governance norms in line with worldwide trends. It may help improve investor confidence and enhance the competitiveness of PSEs.
In the past there have been a number of committees on reform of corporate governance. However, there has been a paradigm shift in governance norms after the global recession and meltdown in 2008-09. Since the government as owner and facilitator has greater importance in global competitiveness and best practices in corporate governance, the time has come to appoint a new committee on reform of corporate governance.
Key Budget Highlights 2016-17
A. Policy Initiatives and Reforms
- The Finance Minister has identified key focus areas for Union Budget 2016-17
being farm, rural, social, infrastructure, employment generation and
recapitalisation of banks. read more
CVC Interacts with PSUs
SCOPE organized an Interactive Meeting of Shri K.V. Chowdary, Central Vigilance Commissioner with Chief Executives/Directors of CPSEs in SCOPE premises. The event attracted large participation from highest level in PSUs. CVC heard and responded to number of concerns highlighted by them. On this occasion, CVC released SCOPE Compendium on Contribution of CPSEs towards Make in India, Digital India, Skill India and Swachh Bharat.
CVC in his address advised the CPSEs to lay down clear processes and guidelines in manuals to promote transparency and remove un-ambiguity. He complimented SCOPE for proactive role to bring excellence in CPSEs.
SCOPE for a Well Documented Ownership Policy of PSUs
SCOPE organized the 13th Program on Corporate Governance under the aegis of Department of Public Enterprises (DPE) here today. The theme of the Program was “Effective Boards for Sustainable Competitiveness with focus on Independent Directors”.
Mr. A. Luikham, IAS, Secretary, Department of Public Enterprises inaugurated the Programme while Mr. R.G. Rajan, Chairman, SCOPE & CMD, RCF Ltd delivered the Presidential Address. Dr. U.D. Choubey, Director General, SCOPE delivered the Welcome Address while the Program Perspectives were shared by Prof. YRK Reddy, Lead Resource Person.
Mr. A. Luikham, IAS, Secretary, DPE in his Inaugural Address complimented SCOPE for organizing this program and said that many more such programs should be held for effective functioning of PSEs. He informed that Government has delegated enhanced autonomy to PSEs to form JVs, raise resources and bring in innovation by conferring Maharatna, Navratnas and Miniratna status. Mr. Luikham said Independent Directors bring in new perspective and new process of thinking and Government is making all efforts in improving the structure and functioning of Boards across PSEs.
Mr. R.G. Rajan, Chairman, SCOPE in his Presidential Address said that Independent Directors have come to play very important role in the Corporate Governance framework. He emphasized the need to accelerate the appointment of Independent Directors and Women Directors on Boards of PSEs. Mr. Rajan also urged for early implementation of Roongta Committee recommendations to help PSEs perform optimally.
While welcoming, Dr. U.D. Choubey, Director General, SCOPE informed that Corporate Governance program is one of the most sought after programs of SCOPE. He said that there is a paradigm shift in the outlook towards Corporate Governance around the world adding that there is need for a well documented Ownership Policy for good governance. Public Sector is governed by heterogeneous regulatory mechanism and there is need for convergence of accountability system so as to hasten decision making process. He also emphasized the need of level playing field for PSEs.
The Program is being attended by large number of CEOs, Directors and Senior Executives of public sector enterprises.
CVC Releases Special Issue of Kaleidoscope on HR
Shri K.V. Chowdary, Central Vigilance Commissioner released the Special Issue of Kaleidoscope journal on HR during the SCOPE International HR Summit 2016 in the gracious presence of Shri Ameising Luikham, IAS, Secretary, Department of Public Enterprises, Shri R.G. Rajan, Chairman, SCOPE & CMD, RCF, Dr. U.D. Choubey, Director General, SCOPE, Dr. Sher Verick, Dy. Director, ILO, Ms. Veena Swarup, Director (HR), EIL and Summit Convener and other dignitaries. The SCOPE Summit was jointly organized by SCOPE and International Labour Organization which was attended by large number of senior HR executives of public sector enterprises.
DPE & SCOPE Organizes Workshop on CSR in SCOPE Premises
While inaugurating the Workshop, Shri Ameising Luikham, IAS, Secretary, Department of Public Enterprises (DPE) asked for more vigorous efforts towards utilization of Corporate Social Responsibility (CSR) funds in judicious manner. He told that PSEs have to work within the ambit of Companies Act 2013 and the Guidelines of the Government to undertake CSR activity.
Dr. U.D. Choubey, Director General, SCOPE highlighted the excellent work done by PSEs for corporate social sector which is a matter of paramount importance providing intangible benefits to corporate sector, sometimes even better than technology and patent. Dr. Choubey said if we are able to enhance the expectations of the society, we can claim the credit. He also urged for recognition and rewarding of the PSEs for excellent work and provide some fiscal incentives for fund utilized on CSR.
Dr. Madhukar Gupta, IAS, Additional Secretary, DPE and a galaxy of CPSEs representatives at top level participated in the Workshop.
SCOPE Advocates Better Media Relations by Public Sectors
SCOPE organized one-day Conclave on “Media Relations” here which was attended by CEOs, Directors and Top Management of public sector enterprises. The inaugural session was addressed by Mr. A.K. Bhattacharya, Editor, Business Standard, Dr. U.D. Choubey, Director General, SCOPE, Mr. Sanjiv Singh, Director (Refineries), Indian Oil Corporation and Member of SCOPE Executive Board, and others.
Speaking on the occasion, Dr. U.D. Choubey, Director General, SCOPE highlighted the importance of media relations and said that reputation and brand promotion by public sector enterprises could be the most important ingredient for taking competitive advantage over others. Dr. Choubey advised that CEOs should make a dedicated group of persons under him to bring the corporate visibility at national and international level and also thwart negative publicity. It would be better if CEO directly contribute to social media to share the achievements by the company so that the same could reach the people at large. This in turn will give a better brand at national/global level, he added.
Mr. Sanjiv Singh, Director (Refineries), IndianOil and Mr. A.K. Bhattacharya, Editor, Business Standard, appreciated the efforts taken by SCOPE and highlighted the importance of media relations.
SCOPE for Fresh Reform Committee for PSUs
Speaking in the International Workshop on Governance of State Owned Enterprises (SOEs) here, Dr. U.D. Choubey, Director General, SCOPE informed that there is marked change in perception of corporate governance in the post recession period for State Owned Enterprises (SOEs). Large many countries including those from Asian Region have already gone for new reform in ownership/Board structure and strategy for Public Sector Enterprises (PSEs). India had earlier Reform Committees under Kumara Mangalam Birla, Narayanamurthy, Naresh Chandra and others and now time has come when government should constitute fresh Reform Committee for Best Practices in Corporate Governance, Board Structure, Ownership Policy and Community Relations, said Dr. Choubey.
SCOPE for better safety measures
SCOPE in association with Directorate General Factory Advice Service Labour Institute (DGFASLI) and International Labour Organization (ILO) organized a National Workshop on “Strategies for Improving Occupational Safety & Health in CPSEs” from December 15-16, 2015 at SCOPE Convention Centre. Dr. D.N. Sharma, Member, National Disaster Management Authority (NDMA) inaugurated the Workshop. Mr. R.G. Rajan, Chairman, SCOPE, delivered the Special Address. Mr. P.P. Mitra, Principal Adviser, Ministry of Labour & Employment delivered the Keynote Address. Dr. U.D. Choubey, DG, SCOPE, Mr. Ravindra Peiris, Sr. Specialist (Employers Activities), ILO and Dr. Avneesh Singh, DG, DGFASLI also addressed the inaugural session of the Workshop.
Dr. D.N. Sharma, Member, NDMA complimented SCOPE for conducting knowledge sharing programme on a periodic basis to promote excellence in the field of environment, health and safety. He emphasized on building sustainability so that multi stake holder partnership work towards unified goal of chemical safety. Adherence to the laws and enforcement of applicable rules and regulations are the actual drivers for robust chemical disaster management in the country, he added.
Mr. R.G. Rajan, Chairman, SCOPE & CMD, Rashtriya Chemicals & Fertilizers Ltd in his Special Address said occupational safety and health measures increases productivity and performance and contributes in building a culture of health safety. He said Corporates should draw lessons from reports of near miss incidences, analyze and discuss them to avoid future accidents. He emphasized that Operating Manuals on occupational safety should be updated periodically.
Dr. U.D. Choubey, DG, SCOPE in his Address said occupational safety and health is an integral part of the public sector management who employee about 14 lakh employees. He informed that Public Sector has structured safety departments and are better placed than others to overcome hazardous accidents. While citing a ILO study, he saidoccupational accidents and work related diseases cause over 2.3 million fatalities and adversely erode 4% of world GDP (2.8 trillion dollar) in terms of capital owing to occupational accidents and work related diseases.
Mr. P.P. Mitra, Principal Adviser, Ministry of Labour & Employment informed that the Govt. of India is codifying 44 labour laws into four labour courts to make compliance easy. He emphasized the need to have a converged database to devise occupational health policy of the government. Training is an integral part of the safety culture, he added.
Mr. Ravindra Peiris, Sr. Specialist (Employers’ Activities), ILO in his address said the government, trade unions and employers should work together to build a culture of occupational safety and health. He extended full support to SCOPE in such endeavour.
Dr. Avneesh Singh, DG, DGFASLI said there is need to innovate and devise new steps to counter these hazards. The Workshop was attended by senior executives working in safety departments of PSEs.
SCOPE for Wider RTI Ambit
Speaking in the two-days Workshop on “Management & Implementation of RTI Act, 2005” organized by SCOPE at Lucknow, Dr. U.D. Choubey, Director General, advocated that private sector and NGOs must be brought under the ambit of RTI, not only for level playing field but also for bringing them on equitable basis under the provision of Right to Information Act which is the law of the land. Dr. Choubey also informed that there are large number of habitual seekers of clarifications under RTI for obvious interests and the same is hampering the competitiveness and productivity in public sector enterprises. Such a list of select PSU(s) has already been provided to CIC.
Shri Jawed Usmani, U.P. State Chief Information Commissioner inaugurated the two-days workshop.
SCOPE for Succession Planning of Women Executives
SCOPE organized a three-day Workshop at Lucknow on Succession Planning for Board Level Positions for senior women executives of public sector enterprises (PSEs). Mr. Ajit Seth, Chairman, Public Enterprises Selection Board (PESB) inaugurated the Workshop in the presence of Mr. R.G. Rajan, Chairman, SCOPE, Dr. U.D. Choubey, Director General, SCOPE and Dr. Geeta Rani Duppati, Professor, University of Waikato, New Zealand. On this occasion, Mr. Seth also released Special Issue of KALEIDOSCOPE on Arbitration.
Mr. Ajit Seth, Chairman, PESB in his inaugural address said empowerment of women and gender equality are the pre-requisites for competitiveness and growth of economies.
Mr. R.G. Rajan, Chairman, SCOPE & CMD, RCF while delivering Special Address said that PSEs have emerged as role model for the career development of the women executives by providing safe and enabling environment for the women employees.
SCOPE Opens Southern Chapter at Bangalore
The Southern Chapter of SCOPE was inaugurated in Bangalore by Dr. U.D. Choubey, Director General, SCOPE in the presence of Shri Malay Chatterjee, Chairman of the Southern Chapter & CMD, KIOCL Ltd and a large number of Chief Executives of the regional PSEs.
The Southern Region has 25 PSEs under its pool with a total investment of Rs. 31,000 Crores and turnover of Rs. 2.02 Lakh Crores during 2013-14. The profit of 18 profit making companies was Rs. 13,000 Crores. Southern Region is home to five Navratnas and 11 Miniratnas besides other PSEs. These PSEs in Southern region are contributing significantly for important segment of economy and also to sensitive areas of defense, and electronics over and above mining, petroleum etc.
The SCOPE Chapter will take up issues and concerns of the PSEs based in the Southern Region of the country and will take it further.
The Opening of the Chapter was followed by a Conclave of the CMDs of the Southern Region PSEs. Dr. U.D. Choubey, Director General, SCOPE and Shri Malay Chatterjee, Southern Chapter Chairman & CMD, KIOCL addressed the meeting.
The Conclave discussed various issues which are affecting the performance of PSEs. SCOPE has given emphasis on professionalization and empowerment of the Boards of PSEs, successive planning including simplification of the process of appointment of CEOs and Directors to achieve faster appointment of Independent Directors.
Dr. U.D Choubey, DG, SCOPE highlighted the need for further reforms in Public Sectors. He informed that there are 290 Central Public Sector Enterprises having an investment of around Rupees Nine Lakh Crores by Government of India. Based on this investment, PSEs are contributing a lot for socio-economic development, which inter alia includes net profit of over Rs 1.2 Lakh Crores besides contributing about Rs 2.20 Lakh Crores to government exchequer by way of taxes, duties, etc. They are contributing significantly toward Corporate Social Responsibility (CSR) for Social Sector. PSEs in India are transparent and well regulated in a system oriented environment. PSEs are imparting best practices in Corporate Governance.
Dr. Choubey reaffirmed the commitment of PSEs for partnering with all development process . The SCOPE Southern Chapter Chairman and KIOCL CMD Shri Malay Chatterjee while commending all for the success of the Conclave expressed that the Chapter will play a significant role in strengthening SCOPE and contribute substantially in the Role of PSEs in nation building.
Dr. U.D. Choubey, DG, SCOPE Addresses OECD Conference at Hanoi (Vietnam)
Dr. U.D. Choubey, Director General, SCOPE was invited to speak on Public Sector Reforms in India during the 8th Asia Network on Corporate Governance of State Owned Enterprises of OECD held at Hanoi (Vietnam).
While speaking in the Conference, Dr. U.D. Choubey, Director General, SCOPE highlighted lot of reforms which have already taken place and also suggested further reforms with regard to effective Board structure with adequate empowerment, succession planning and autonomy. Several Asian countries participated during the two days programme held at Hanoi.
SCOPE Advocates CAG & RTI for NGOs on CSR Spend
Speaking at the National Round Table Conference on “CSR Feedback & Fast-forward” organized by BRICS Chamber of Commerce & Industry, Dr. U.D. Choubey, Director General, SCOPE said there are 33 lakh NGOs in the country. As public money in private hands is more vulnerable to hazards, NGOs should also be brought under the ambit of CAG and RTI. He said CSR is not only for regulatory compliance but is something beyond and should be taken from mind and heart. Dr. Choubey said that community relations have become the most strongest driving strategy to sustain businesses based on trust, transparency and truthfulness. He said public sector has coined parallel social vision along with Industry vision for improving brand image through CSR.
SCOPE's Special Issue on Fertilizer Sector Released
Mr. R.G. Rajan, Chairman, SCOPE and CMD, Rashtriya Chemicals & Fertilizers Ltd (RCF) released the Special Issue of KALEIDOSCOPE Journal on "Fertilizer Industry" in the presence of Dr. U.D. Choubey, Director General, SCOPE, Mr. S. Venkateswar, CMD, Projects & Development India Ltd (PDIL), Capt. P.K. Kaul, Director (Marketing), National Fertilizers Ltd and a large number of senior executives of CPSEs.
SCOPE Advocates Faster Arbitrations
SCOPE Forum for Conciliation & Arbitration (SFCA) organized two-day National Seminar on “Challenges in Contracts & Arbitration” which was attended by Dr. E.M. SudarsanaNatchiappan, Chairman, Parliamentary Standing Committee on Law & Justice and Mr. P.K. Malhotra, ILS, Secretary, Department of Legal Affairs, Ministry of Law & Justice and a large number of participants from PSEs.
Dr. U.D. Choubey, DG, SCOPE in his Address expressed serious concern on large many arbitration cases in public sector enterprises affecting their bottom line. He urged for suitable amendment in Arbitration & Reconciliation Act keeping in view the cost of long time taken and exorbitant cost of Arbitral proceedings.
SCOPE Advocates better Project Management
While inaugurating the National Workshop on "Totality of Project Management" here today, Dr. U.D. Choubey, Director General, SCOPE advocated digitalized Project Management to complete projects without time and cost overruns. He advocated for robust Project Management through proper planning, monitoring, and tightening of all loose ends in project execution.
SCOPE for Level Playing Field
While addressing the Conference of State Chief Information Commissioners here today, Dr. U.D. Choubey, Director General, SCOPE said that RTI Act 2005 has enhanced the brand image of public sector enterprises in India and abroad. The Conference was organized by Central Information Commission.
Dr. Choubey emphasized on the level playing field between government/public sector and non-government sectors on the principle of equity especially when the listed private companies or NGOs are holding public money through shareholders and financial institutions. Dr. Choubey was of the opinion that public money in the private hands is equally bad.
Dr. Choubey said that there are large number of habitual seekers of irrelevant clarifications under RTI which is affecting the productivity of CPSEs. He further informed that SCOPE had obtained details of the habitual information seekers from the CPSEs and the same has been provided to the august institution of CIC.
SCOPE for developing global leaders in PSEs
SCOPE organized the 4th Global Leadership Programme for senior executives of public sector enterprises. IIM-Calcutta is the resource organization. Mr. A. Luikham, IAS, Secretary, Department of Public Enterprises delivered the Keynote Address. Mr. R.G. Rajan, Chairman, SCOPE, Dr. U.D, Choubey, Director General, SCOPE and Prof. Sougata Ray, Professor, IIM-C and Programme Director also addressed the Opening Session.
While delivering the Keynote Address, Mr. A. Luikham appreciated SCOPE for organizing Global Leadership Programme for developing world class leaders in public sector enterprises. He said the government has faith in the PSEs and it is very keen to make PSEs more vibrant. He further said that opportunities are immense and advised the PSE executives to sharpen their competitive edge through management development programmes.
Mr. R.G. Rajan, Chairman, SCOPE in his address talked about the vital contribution made by PSEs towards developing the economy of the country. Mr. Rajan also announced that SCOPE will shortly organize an exclusive workshop for women executives as a part of succession planning.
Dr. U.D. Choubey, Director General, SCOPE said Global Leadership Programme is one of the most prestigious flagship programme of SCOPE. With liberalization and globalization, the PSEs have now realized the importance of innovation, organizational transformation and change mindset to promote a brand PSE, he added.
The programme was attended by senior executives of public enterprises.
SCOPE Chairman Addresses 46th Session of the Indian Labour Conference
Mr. R.G. Rajan, Chairman, SCOPE and Chairman, Council of Indian Employers was unanimously elected as Vice Chairman of Employers Group for the 46th Session of the Indian Labour Conference (ILC) which was inaugurated by the Hon’ble Prime Minister of India at Vigyan Bhawan, New Delhi on 20th July, 2015.
While addressing the 46th Session of the Indian Labour Conference in the presence of Hon’ble Prime Minister, Mr. R.G. Rajan put forth the industry’s perspective on vital issues touching upon labour, employment and social policies, critical to economic and social development of the country. Mr. Rajan appreciated the ongoing efforts to review and rationalize labour policies following NDA government’s commitment of ‘maximum governance’ with ‘minimum government’, transparency and accountability. He complimented the government for initiating necessary changes in the ‘Shram Suvidah portal’ and launching of National Career Service (NCS) Portal and launching the ESIC 2.0: Reform Initiatives of ESIC. He also welcomed the introduction of three new draft bills namely ‘Small Factories (Regulation of Employment & Conditions of Services) Bill 2014, ‘Labour Code on Wages Bill, 2015’ and the Labour Code on Industrial Relations Bill, 2015 by the ministry.
Chairman, SCOPE said that the employers fully believed in universal social security which is a fundamental right. He informed that the industry is already contributing more than one fifth of an employee’s wages towards the social security. Mr. Rajan said that the laws framed mainly to cater the manufacturing sector, do not address the problems of the service sector which today accounts for 57 percent of the GDP. Mr. Rajan said the outdated and rigid nature of labour laws protects a handful of say 6-7 percent of the workforce, seriously hampering employment generation capacity of the organized sector. This forces the 10-12 million youth joining labour force every year to join informal economy, where the working conditions are pathetic and earnings are also abysmally low. Multiplicity of labour laws present operational problems in implementation and compliances that needs to be looked into, he emphasized.
DG, SCOPE Addresses ILO Summit at Geneva
Dr. U.D. Choubey, Director General, SCOPE while addressing the Plenary Session of the 104th Session of International Labour Conference in Geneva, drew the attention of the international community to the crucial issues of skill development and workers migration to combat global unemployment. He asked ILO to channelize highest resources on skill development across countries. Multilateral agreements need to be entered into for creating skill corridors to migrate skilled people across counties, he emphasized.
Dr. Choubey was nominated as Indian Employers Delegate by the Govt. of India for the 104th Session of the International Labour Conference being held in Geneva from 1st June to 13h June 2015.
Expressing the concern over the condition of informal sector workers, Dr. Choubey emphasized to develop two-pronged strategy to improve the working conditions through social security, skill training, safety, health and sanitation, drinking water and reviewing and restructuring institutional framework of the formal sector enterprises. Dr. Choubey mentioned that India has massive plan for internationally bench-marked skill development for which he sought the support of ILO and developed nations. He also emphasized that the policy of protectionism followed in developed countries need to be reviewed to encourage labour migration from developing countries. He stressed on the need to develop Global partnership to realize the Millennium Development Goals.
Dr. Choubey highlighted the initiatives of the Govt. of India to ensure environmental protection, climate change and social security and labour reform. He also highlighted the initiatives on rural employability through Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA).
Ten days ILO Summit had representatives from workers, employers and government from more than 100 member countries in Geneva.