Parliamentary Panel Flags 'Acute Governance Deficit' Over PSU Vacancies

A parliamentary committee has raised alarms over a significant governance deficit within India's public sector enterprises and the finance ministry's Department of Investment and Public Asset Management (DIPAM). The committee, led by senior BJP MP Bhartruhari Mahtab, described the extensive vacancies as an "acute governance deficit."

“

It is deeply concerning that 53 CPSEs continue to operate without regular Chairmen and Managing Directors (CMDs), while a staggering 70% of Independent Director posts (533 out of 758) remain vacant.

The report revealed that 53 Central Public Sector Enterprises (CPSEs), including major entities like Bharat Petroleum Corporation Ltd. (BPCL) and BSNL, are operating without permanent Chairmen and Managing Directors (CMDs). These companies are currently managed under temporary "additional charge" arrangements. The situation is particularly dire for Independent Director positions, with 533 out of 758 posts vacant, representing a 70% vacancy rate.

“

systemic governance deficit

The committee found the government's response, attributing selection to the Public Enterprises Selection Board (PESB), to be "largely procedural" and lacking concrete solutions. Furthermore, DIPAM itself faces a crippling 43% vacancy rate, with only 51 officers against a sanctioned strength of 89. Critical shortages exist at the Director and Under Secretary levels.

“

largely procedural and fails to offer concrete, outcome-oriented solutions to resolve the acute governance deficit.

This manpower shortage at DIPAM, a department tasked with maximizing asset value, is seen as severely jeopardizing its capacity to execute complex transactions like the IDBI Bank sale and finalize Memoranda of Understanding (MoUs) with CPSEs. The committee emphasized that such deficiencies undermine the department's ability to effectively manage disinvestment targets and recycle prime real estate assets.

“

severely jeopardizes the Department’s ability to execute complex transactions like the IDBI Bank sale or finalize CPSE MoUs. Such significant manpower shortages in a field requiring highly specialized financial and legal expertise 7 undermine the Department’s capacity to effectively manage the disinvestment target and the recycling of prime real estate assets.