PSU honchos may be held responsible for missing targets
The government may hold top executives responsible if state-run power sector companies fail to meet performance targets and punish them with fines and transfers. The strict performance parameters are aimed at ensuring that at least the reduced target for 62,000 Mw of generation capacity addition is achieved before the end of the 11th plan, said a power ministry official. Performance of chairmen and managing directors of the power PSUs in project implementation will be assessed as per the terms and conditions stipulated in the company’s memorandum of understanding (MoU) with the power ministry, reports The Economic Times. Power sector advisory body Central Electricity Authority (CEA) will do the assessment and recommend appropriate action.
The new rule proposed by the power ministry will cover chairmen, managing directors, functional directors, executive directors and chief engineers of the power sector PSUs like NTPC, NHPC, PFC, REC and Power Grid.
Performance parameters of executives came under strict scrutiny due to a lack of progress in capacity addition programme. While the target for the 11th plan has already been scaled down by the government from 78,500 mw, in the first three years of the plan yielded only 22,302 mw of fresh capacity.
The power ministry has made it mandatory on all PSUs to fix key performance areas (KPA) of project implementation for each layer of hierarchy beginning with the level of chief engineers and up to the level of director (projects), at the beginning of each year. KPA would stipulate the milestone for each critical activity including timeline for each of these.
The KPAs will be reviewed once in six months at each level beginning with the level of chief engineer. Outcomes of the review meetings would be reported to CMDs, who will submit the report to the CEA and the ministry of power in 15 days of holding the review meeting. (ET)
Will Minister also be resonsible for failure to achieve targets? They also should be held responsible and transferred or dismissed for failure to achieve targets. Otherwise this whole programme will be futile.
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