Maharatna and Navratna public sector enterprises (PSEs) finding it tough to meet their yearly MoU targets due to changes in the economic conditions may soon get a breather from the Government.
The Minister for Heavy Industries and Public Enterprises, Mr Praful Patel, said that fresh guidelines will be issued within this fiscal for such firms with a new review mechanism.
This will take into account challenges such as delays in environmental clearances, power shortages, adverse oil price movement and raw material shortages.
“MoUs are fixed, but sometimes they are not realistic and targets cannot be met. That is why for such companies some kind of more operational flexibility and guidelines will have to be brought in place,” Mr Patel said.
“Ultimately if these companies have to grow and become global, they will require this and we are very inclined to look at all these issues. These things will have to be looked at very objectively, so that they do not feel suffocated.”
Cite challenges
On Wednesday, the CMDs of several top PSEs such as NTPC, ONGC, SAIL and Indian Oil had submitted their proposals to the Minister. They had cited several challenges faced by them which had led to their inability to meet the prescribed MoU targets.