MoU targets are growth oriented and ratings are linked to incentives of management staff of PSUs
The National Confederation of Officers' Associations (NCOA), the National Forum of the Executives of Central Public Sector Enterprises, has written a letter to Prakash Javadekar, Union Minister of Environment, Forest and Climate Change, Information & Broadcasting and Heavy Industries & Public Enterprises, seeking early
finalization of MOU ratings for performance of CPSEs for FY 2019-20.
Targets set in MoU are growth oriented and aspirational which are usually set at a higher level than past achievement. MoU performance is rated in five scales of Excellent, Very Good, Good, Fair and Poor. These ratings are linked to the incentives of the management staff of Central Public Sector Undertakings (CPSU). The content of the letter is given below for the benefit of the viewers of www.indianpsu.com -
Shri Prakash Javadekar ji
The Hon’ble Minister of Environment, Forest and Climate Change, Information & Broadcasting and Heavy Industries & Public Enterprises
Govt of India
Subject: Early finalization of MOU ratings for performance of CPSEs for FY 2019-20
The MOU performance rating for CPSEs normally used to be finalised within 09-10 moths of completion of Financial Year. Considering this practice, the MOU rating for FY 2019-20 should have been finalised by January 2021. We would like to bring to your kind notice that a portion of Pay package for Executives of CPSEs are being paid in terms of variable pay (PRP) which is decided based on the performance rating of CPSEs. The executives of CPSEs are already facing dent its fixed pay due to freezing of IDA in light of DPE’s Office Memorandum (OM) vide W-02/0039/2017- DPE(WC)-GL-XVI/20 dated 19.11.2020.
The delay in finalization of MOU ratings of CPSEs are causing further frustration among executives. CPSE’s employees has been in the forefront of battle during pandemic risking their life by rendering services to nation to ensure the reach of goods & services at each corner of the country in terms of uninterrupted supply of Fuel, LPG, power, fertilizers, communications, defence production etc. CPSEs has not only in the forefront to implement the dream of our hon’ble Prime Minister, Sri Narendra Modi ji for “Atamanirbhar Bharat” but also to increase Capex in multifold to fuel economy during pandemic.
As the current central government is known for taking faster and time bound actions, your kind intervention is solicited for getting the MoU ratings for performance of CPSEs for FY 2019-20 finalised at the earliest.