NEW DELHI, July 22: Taking decisions and implementing them may no longer be a traumatic experience for public sector managers. The Vittal Committee set up to review PSU guidelines is likely to recommend scrapping of as many as 60 per cent of Government guidelines which rule PSUs. About 20 per cent of the guidelines will be changed and updated while 20 per cent will be kept as they are.

These changes will free the PSUs from the restrictive network of rules which prevent its managers to take independent decisions. PSU managers say that they spend more time ensuring that a rule is not broken than in ensuring the profits of the company improve. This fact has been recognised even by the Industry Ministry which feels that removing rules on petty matters will help the PSU. Given the pragmatic view of the Ministry on this issue, the Government may accept these recommendations. The Committee will finalise and present its report to the Government next month.

Set up in late May by the Ministry, the Committee is headed by N. Vittal, chairman of the Public Enterprises Selection Board, M A Pathan, CMD of Indian Oil Corporation and Uddesh Kohli, chairman of the Standing Conference on Public Enterprises. Joint Secretary in Department of Public Enterprises of the Industry Ministry is the Secretary of the Committee. The Committee thrashed out the guidelines at a recent internal workshop organised by SCOPE. SCOPE has been asking for changes in the guidelines for long time.

The Committee is also expected to adopt the Code of Conduct for PSUs drafted by Vittal. The code lays down duties for the administrative ministries so that they do not interfere with the functioning of PSUs. The code also empowers employees to report decisions where the PSU's or the nation's interests may be harmed.

The guidelines which are going to get the axe include those which rule the minor everyday operations of PSUs or those which no are no longer relevant. For instance there is a directive which requires that every PSU provide creches for its women employees. Then there are rules which govern the purchase, use and maintainance of staff cars. Many rules relating to personnel management are also expected to go. For instance there is rule on how to deal with a situation when employees do not come to work in case of a bandh. There are other rules which govern how PSUs should interact with chambers of commerce and presentation of gifts to MPs.

The guidelines which are expected to be changed or amended relate to issues like material management and purchase rules.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.