Categorization of Central Public Sector Enterprises
The Department
of Public Enterprises(DPE) has laid down
criteria for initial as well as re-categorization of Central Public Sector
Enterprises(CPSEs) into appropriate schedules.
All CPSEs are required to be categorised into four schedules, namely,
Schedule ‘A’, Schedule ’B’, Schedule ‘C’ and Schedule ‘D’.
The
categorization of CPSE has implications mainly for organizational structure and
salary of Board level incumbents of the concerned CPSE. Some modifications have been made to the
previously existing system of categorization.
The procedure and parameters to be used for the purpose of
categorization are as below:
(i)
The proposals for categorization of CPSEs
would continue to be initiated by the concerned administrative
Ministry/Department and submitted to DPE, which would examine such proposals in
consultation with the Public Enterprises Selection Board. The proposals for categorization of CPSEs
should be furnished to DPE with the concurrence of the Financial Advisor and
the approval of the Minister-in-charge of the concerned administrative
Ministry/Department.
(ii)
The proposal should contain performance of
the concerned CPSE for last five years on the following quantitative parameters
(definitions as per Public Enterprises Survey).
·
Investment
·
Capital employed
·
Net sales
·
Profit before tax
·
Number of employees and units
·
Capacity Addition
·
Revenue per employee
·
Sales/Capital Employed
·
Capacity utilization
·
Value added per employee
(iii)
The
proposals for categorization should also
contain details on the following qualitative factors related to the concerned
CPSE.
·
National importance
·
Complexities of problems being faced by the
company
·
Level of technology
·
Prospects for expansion and diversification of
activities
·
Competition from other sectors
(iv) The information on the following
factors, wherever available, should also be included in the proposals
for categorization.
·
Share price
·
MOU ratings
·
Maharatna/Navratna/Miniratna status
·
ISO certification
(v)
In
addition to above factors, the
critical/strategic importance of the concerned CPSE will continue to be taken
into account.
(vi) In case of initial categorization, if
the figures of past performance on above quantitative factors are not
available, figures projected in the Cabinet Note relating to the setting up of
the CPSE may be furnished.
The concerned administrative Ministry/Department should furnish
self-contained comprehensive proposals for categorization of CPSEs containing
the following particulars/information/documents:
(i)
Full
justification for proposing categorization of the CPSE in a particular Schedule
supported by financial, physical and qualitative performance figures for the
last five years in respect of parameters
as mentioned at (ii), (iii) and (iv)
above.
(ii)
Copy
of the Cabinet Note for setting up of
CPSE along with an extract of the decision of the Cabinet and copy of
Memorandum and Articles of Association of the CPSE (applicable in case of
initial categorization).
(iii)
Existing
organizational structure indicating all posts up to the 4th level in
the CPSE and their pay scales.
(iv) Comparison with other CPSEs in the same
cognate group and with those under the administrative control of the
Ministry/Department concerned, with reference to the quantitative parameters
mentioned. The CPSEs incorporated under
Section 25 of the Companies Act would also be compared with similar CPSEs for
the purpose of categorization.
(v)
Corporate
Plan of the concerned CPSE.
(vi) Financial implication of the proposal.
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