Financial Daily from THE HINDU group of publications
Wednesday, Sep 08, 2004
Financial Daily from THE HINDU group of publications Wednesday, Sep 08, 2004 |
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Opinion
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Letters System evaluation
This is with reference to "Action plan for more autonomy to PSEs" (Business Line, September 5). The system of Memorandum of Understanding was adopted mainly to ensure effective performance of the public sector enterprises (PSEs) as well as to allow them to function autonomously. However, this MoU has proved to be a failed experiment. Such an agreement with the majority shareholder outside the Board erodes the quality of governance. Since the performance of the PSEs are evaluated against the targets fixed in the MoU, many of the PSEs opt for soft targets, which makes the system of evaluation a mockery. The system of MoU loses its meaning further in the increasing incidences of divestiture. It is time the system of MoU was scrapped and a new system of performance evaluation instituted. C. Ramesh Keeramangalam (TN)
Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in
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