Office of

Baijayant “Jay” Panda

FOR EARLY RELEASE th

Member of Parliament (Lok Sabha) from Kendrapara, Odisha

Date: April 29 , 2016

PRESS RELEASE PMB 3: Timely Filling of Vacancies in CPSEs Bill, 2016 Senior Biju Janata Dal leader and Kendrapara MP, Shri Baijayant Jay Panda introduced a Private Member’s Bill titled ‘Timely Filling of Vacancies in Central Public Sector Enterprises Bill, 2016’ in the Lok Sabha on April 29th, 2016. Central Public Sector Enterprises (CPSE) constitute a key element of our economy. Ensuring proper management and corporate governance of these enterprises is crucial not just because of our obligation to utilise taxpayer money in the most efficient way, but also because ineffective leadership at these enterprises can have adverse ramifications for the economy as a whole. Shri Panda’s Bill is aimed at enforcing timely interventions backed by statutory force to fill up board-level vacancies in central public sector enterprises expeditiously. His Bill infuses the idea of mentoring the new by the old personnel before the new entrant joins the office. This helps in training and preparing the new entrant to deal with the challenges of his new role under the tutelage of the experienced personnel. There is a need to recognise that the advance identification of personnel who will fill vacancies once they arise is important not just for avoiding delays, but also for ensuring some continuity in the management of the public sector enterprises. Besides laying out the role of PSEB and the Central Government for notifying and recommending personnel for unanticipated vacancies, the Bill also penalises the both Central Government and PSEB in cases where it fails to fulfil its obligations. The final authority to make rules under this Act remains with the Central government and the Parliament. Hence, in this way, Shri Panda’s Bill realizes its objectives of ensuring proper management of CPSE’s, responsible utilization of the taxpayer’s money and infusing corporate governance in the functioning of CPSE’s. Kindly click on this link to read Baijayant Panda’s Bill: https://goo.gl/PS6SmV

jaypanda.in @PandaJay/@mp_office

TO BE INTRODUCED IN LOK SABHA

Bill No.

of 2016

THE TIMELY FILLING OF VACANCIES IN CENTRAL PUBLIC SECTOR ENTERPRISES BILL, 2016 BY SHRI BAIJAYANT “JAY” PANDA, M.P. A BILL to require the Central Government and the Public Enterprises Selection Board to make timely arrangements so that board-level vacancies in central public sector enterprises are filled expeditiously.

Be it enacted by Parliament in the Sixty-seventh Year of the Republic of India as follows:1. (1) This Act may be called the Timely Filling of Vacancies in Central Public Sector Enterprises Act, 2016. (2) It shall come into force on such date as the Central Government may appoint through a notification in the Official Gazette.

Short title and commencement.

2. In this Act, unless the context otherwise requires, -

Definitions

(a) “Board-level vacancy” refers to those posts in public sector enterprises for which the Public Enterprises Selection Board recommends a name for appointment, namely, the posts of Chairman, Managing Director or Chairman-cum-Managing Director (Level 1) and Functional Director (Level II). (b) "Public Enterprises Selection Board” refers to the board of the same name constituted by the Government of India by a resolution dated August 30th 1974 and as reviewed from time to time. (c) “Anticipated vacancy” refers to a vacancy for a post that arises due to the superannuation of the personnel who is occupying that post. (d) “Unanticipated vacancy” refers to a vacancy for a post that could not have been reasonably foreseen, such as when the vacancy arises due to the death or resignation of the personnel who is occupying that post. 3. For every anticipated vacancy, the Public Enterprises Selection Board shall: (a) send the Job Description of the post sixteen months in advance to the concerned ministry for comments. (b) finalise the Job Description of the post within fifteen days of complying with clause (a), irrespective of whether the concerned ministry has responded with comments. (c) cause advertisement of the vacancy to be issued one year in advance. (d) Take all such steps as may be necessary to ensure that a final recommendation as to who should be appointed to fill the vacancy is sent to the concerned ministry six months in advance.

Role of PESB for anticipated vacancies

Explanation: This provision shall operate without prejudice to any other function or act of the Public Enterprises Selection Board that is not inconsistent with the requirements under this Act, such as selecting a reserve recommendation for a post and keeping it in a sealed cover, to be disclosed only if necessary. 4. For every anticipated vacancy, once the requirements of Section 3 have been fulfilled by the Public Enterprises Selection Board, the Central Government shall, two months in advance of the vacancy, finalise and notify the details of the personnel who has been chosen to fill the post once it becomes vacant.

Role of Central Government for anticipated vacancies

Explanation: This provision shall be satisfied if a designated mechanism of the Central Government, such as the Appointments Committee of the Cabinet, finalises and notifies the details of the personnel who has been chosen to fill the post once it becomes vacant. 5. Once the requirements of Section 4 have been fulfilled, the Central Government shall also take steps to ensure that the personnel whose details have been notified shall, as early as possible, work closely with the personnel currently occupying the post to understand the characteristics of the role, including by providing that the former shall shadow the latter in the performance of his or her functions, where possible. 6. For every unanticipated vacancy, the Public Enterprises Selection Board shall take all such steps as may be necessary to ensure that a final

Role of Central Government in achieving continuity Role of PESB for

recommendation as to who should be appointed to fill the vacancy is sent to the concerned ministry within four months of the vacancy arising.

unanticipated vacancies

7. For every unanticipated vacancy, the Central Government shall within one month of receiving the recommendation from the Public Enterprises Selection Board as provided for in Section 6, finalise and notify the details of the personnel who has been chosen to fill the post.

Role of Central Government for unanticipated vacancies

8. Within one month of this Act coming into force, the Central Government shall notify an official not below the rank of Additional Secretary who shall be responsible for ensuring that the Central Government fulfils its obligations under Sections 4 and 7.

Designated Official

9. (1) Failure of the Central Government to fulfill its obligations under Sections 4 and 7 shall make the official referred to in Section 8 liable to: (a) a fine of Rs. 1000 for each day of delay in finalizing and notifying a personnel as provided for under these sections. (b) such other disciplinary action as the Central Government may deem fit. Provided that no penalty shall be imposed if the official proves that the failure to fulfill these obligations was due to circumstances beyond his or her control. (2) Failure of the Public Enterprises Selection Board to fulfill its obligations under Sections 3 and 6 shall make its Chairman liable to a fine of Rs. 1000 for each day of delay in making a recommendation as provided for under these sections. Provided that no penalty shall be imposed if the Chairman proves that the failure to fulfill these obligations was due to circumstances beyond his or her control.

Penalties

10. No suit, prosecution or other legal proceedings shall lie against any officer, employee, agency or person acting on its behalf, in respect of anything which is in good faith done or intended to be done under this Act

Protection of good faith actions

11. (1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act. (2) Every rule made under this Act by the Central Government shall be laid, as soon as may be after it is made, before each house of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

Power to make rules

STATEMENT OF OBJECTS AND REASONS

Central public sector enterprises constitute a key element of our economy. Ensuring proper management and corporate governance of these enterprises is crucial not just because of our obligation to utilise taxpayer money in the most efficient way, but also because ineffective leadership at these enterprises can have adverse ramifications for the economy as a whole. Currently, there exist guidelines from the Public Enterprises Selection Board and the Appointments Committee of the Cabinet which prescribe practices that aim to ensure that no board-level vacancy in public sector enterprises lies unfilled for a long period of time. However, there is a need to provide statutory force to these practices, especially as we continue to see large numbers of board-level posts remaining vacant today despite these guidelines. There is also a need to fix responsibility, accompanied by penalties for breaching the same, so that every incentive exists for the timely filling of vacancies that arise. Finally, there is a need to recognise that the advance identification of personnel who will fill vacancies once they arise is important not just for avoiding delays, but also for ensuring some continuity in the management of the public sector enterprises. Hence, this Bill.

NEW DELHI; April 29th, 2016

BAIJAYANT “JAY” PANDA

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 11 of the Bill empowers the Central Government to make rules for carrying out the purpose of the Bill. As the rules and regulations will relate to matters of detail only, the delegation of legislative power is, therefore, of a normal character.

LOK SABHA

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A BILL to require the Central Government and the Public Enterprises Selection Board to make timely arrangements so that board-level vacancies in central public sector enterprises are filled expeditiously

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(Shri Baijayant "Jay” Panda, M.P.)