Vacancies in PSUs

A parliamentary committee has raised serious concerns over the sheer number of vacant positions in government-run companies and public sector enterprises (CPSEs) under the finance ministry. This issue has been labeled a "deeply concerning governance deficit" by the finance standing committee, led by senior BJP MP Bhartruhari Mahtab, in their recent report.

According to the committee, 53 CPSEs are currently operating without regular Chairmen and Managing Directors (CMDs), while a staggering 70% of Independent Director posts, totaling 533 out of 758, remain unfilled. The committee highlighted a "systemic governance deficit" across CPSEs, characterized by a "triple crisis" involving leadership vacancies, funding shortfalls, and capability gaps at the state level.

The report specifically identified 53 CPSEs as operating without regular CMDs, including strategic entities like Bharat Petroleum Corporation Ltd. (BPCL) and BSNL. They rely on temporary "additional charge" arrangements for oversight. The situation is particularly acute for Independent Directors, with a vacancy rate of 70%, or 533 out of 758 positions.

The finance committee's chair, Mahtab, criticized the government's response as "largely procedural" and lacking in concrete, outcome-oriented solutions to address the governance deficit.

Moreover, the Committee expressed deep concern over the Department of Investment and Public Asset Management (DIPAM), which oversees a disinvestment agenda. DIPAM is currently operating with a concerning 43% vacancy rate, leaving only 51 officers against a sanctioned strength of 89. This includes critical shortages at the Director (11 vacancies) and Under Secretary (8 vacancies) levels.

The committee emphasized that this significant manpower shortfall severely jeopardizes the department's ability to execute complex transactions, such as the IDBI Bank sale, and finalize CPSE Memorandums of Understanding (MoUs). The panel noted that such shortages, particularly in highly specialized financial and legal expertise, undermine the Department's capacity to effectively manage its disinvestment targets and the recycling of prime real estate assets.