Independent Directors Are Important Functionaries To Ensure ‘corporate Governance’ In Cpses: Minister

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Independent Directors are important functionaries to ensure ‘corporate governance’ in the CPSEs, said Union Minister for Heavy Industries, Dr. Mahendra Nath Pandey at the Director’s meeting organized by the ministry on Thursday.

“Independent Directors bring an objective view and safeguard the interests of the stakeholders, particularly the minority stakeholders. They give independent judgment to the board on issues of strategy, performance, and risk management,” he said.

One of the key functions of the government being the majority shareholder of the CPSEs is to undertake regular performance evaluations and to assess their efficiency towards the fulfilment of core objectives for which they have been constituted. The performance evaluation system, i.e., the Memorandum of Understanding (MoU) evaluation system reflects a company’s performance, the minister added.

“Many CPSEs are going through a challenging time due to the competition. It is high time that we converted such challenges into opportunities for the growth of companies. Timely completion of projects is of utmost importance so as to start generating revenues and avoiding cost overruns.”

CPSEs should consistently work towards indigenisation and support the nation in becoming a Global Manufacturing Hub. The Prime Minister’s mantra for all CPSEs is “Perform, Reform and Transform”, the minister said.

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