Compendium of Guidelines regarding Board Level Appointment in Central Public Sector Enterprises (CPSE) – Updated till 02.12.2022: DoP&T
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training
COMPENDIUM OF GUIDELINES REGARDING BOARD LEVEL APPOINTMENTS IN CENTRAL PUBLIC SECTOR ENTERPRISES
(UPDATED TILL 02.12.2022)
I N D E X
Chapter | Subject | Page No. | ||
1. | Introduction | 1-2 | ||
2. | Board Level Appointments In CPSEs | 3-19 | ||
(A) | Authority | 3 | ||
(B) | Procedure | 3 | ||
(C) | Eligibility | 11 | ||
(D) | Time Schedule | 12 | ||
(E) | Appointment through other than PESB procedure | 13 | ||
(F) | Exemption of a post from the Rule of Immediate Absorption | 15 | ||
(G) | Guidelines for debarment of selected candidates failing to join | 16 | ||
(H) | General Instructions relating to Panel given by the PESB | 16 | ||
(I) | Scrapping of Panel proposed by PESB | 17 | ||
(J) | Authority to relax | 17 | ||
(K) | Designation of a Nodal Officer | 17 | ||
(L) | ACC Vacancy Monitoring System (AVMS) | 17 | ||
(M) | Other Instructions | 18 | ||
3. | Confirmation Procedure | 19-20 | ||
4. | Tenure of Board Level Appointments in CPSEs and Extension in Tenure | 21-26 | ||
(A) | Tenure Guidelines | 21 | ||
(B) | Extension in Tenure | 21 | ||
(C) | No Extension in tenure without the approval of the ACC | 23 | ||
(D) | Ad-Hoc Extension of Tenure | 24 | ||
(E) | Extension in service beyond the Age of Superannuation | 24 | ||
(F) | Important instructions in respect of sick CPSEs | 25 | ||
5. | Additional Charge Arrangements | 27-29 | ||
(A) | Guiding Principle | 27 | ||
(B) | Delegation of powers w.r.t. Additional Charge Arrangements : | 27 | ||
I. | Schedule ‘A’ and ‘B’ CPSEs | 27 | ||
II. | Schedule ‘C’ and ‘D’ CPSEs | 29 | ||
(C) | Posts located at considerable distance | 29 | ||
(D) | Additional charge not to be entrusted to Financial Adviser (FA) in the Ministry as a general rule | 29 | ||
(E) | Subsidiary Companies | 29 | ||
6. | Appointment of Non-Official Directors | 30-33 | ||
1. | Eligibility Criteria | 30 | ||
(A) | Criteria of Experience | 30 | ||
(B) | Criteria of Educational Qualification | 30 | ||
(C) | Criteria of Age | 30 | ||
(D) | Re-appointment | 31 | ||
(E) | Appointment in number of CPSEs at the same time | 31 | ||
2. | Initiation of proposals for appointment of Non-Official Directors | 31 | ||
3. | Proposal Not Received Prior To Four Months Of The Occurrence Of Vacancy | 31 | ||
4. | One Search Committee for all CPSEs | 32 | ||
5. | Competent Authority for appointment of NoDs | 32 | ||
6. | Time-Frame for appointment of Non-Official Directors | 33 | ||
7. | Validity of Panel of names recommended by DPE | 33 | ||
8. | Monitoring of vacant positions of Non-Official Directors | 33 | ||
9. | Proforma | 33 | ||
10. | Nomination of Independent Director of the Holding Company to the Board of the Subsidiary Company | 33 | ||
7. | Premature Termination / Non-Extension Of Tenure | 34 | ||
8. | Vigilance Clearance | 35-37 | ||
(A) | Fresh appointments | 35 | ||
(B) | Additional charge | 36 | ||
(C) | Validity of CVC’S clearance | 36 | ||
(D) | Extension | 36 | ||
(E) | Up-gradation of pay scales consequent on re- categorization of CPSEs | 37 | ||
9. | Public Enterprises Selection Board (PESB) | 38-41 | ||
10. | Handling of Court Cases relating to ACC | 42 | ||
11. | Miscellaneous Instructions | 43-44 | ||
(A) | Date of Superannuation | 43 | ||
(B) | Date of Effect | 43 | ||
(C) | Submission of Abstracts of ACRs | 43 | ||
(D) | Implementation of Orders of ACC | 43 | ||
(E) | Responsibility of Secretary of Concerned Administrative Ministry/Department | 44 | ||
(F) | Reconsideration of Orders of ACC | 44 | ||
(G) | Rectification of Any Discrepancies In Instructions | 44 | ||
Appendix I | Competent Authorities | 45-47 | ||
Appendix II | Procedural Requirements for submission of cases to the ACC | 48-50 |
Chapter 1
Introduction
(A) Composition of Appointments Committee of the Cabinet (ACC)
{Auth: Cabinet Secretariat’s communication No.1/11/2014-Cab. dated 03.12.2014}
Prime Minister – Chairman
Home Minister – Member
(B) Broad functions of ACC
{Auth: Government of India (Transaction of Business) Rules, 1961 as amended from time to time – As available on website of the Cabinet Secretariat}
The broad functions within the jurisdiction of the Appointments Committee of the Cabinet as listed in the First Schedule of Government of India (Transaction of Business) Rules are:
(i) To take decisions in respect of appointments specified in Annexure I to the First Schedule to the Government of India (Transaction of Business) Rules, 1961; and to decide upon temporary up-gradation of post(s) to the level of Joint Secretary and above (namely, post(s) carrying Grade Pay of Rs.10,000/- in Pay Band-4 and above) for a maximum period of two years from the date of up-gradation and to decide upon temporary down-gradation of such post(s) for a specified period;
Note: The cases of temporary upgradation or down-gradation of posts are to be placed before the Appointments Committee of the Cabinet after completing requisite inter-Ministerial consultations including with the Department of Expenditure.
(ii) To take decisions in respect of empanelments specified in Annexure II to the First Schedule to the Government of India (Transaction of Business) Rules, 1961;
(iii) To decide all cases of disagreement relating to appointments between the Department or Ministry concerned and the Union Public Service Commission;
(iv) To decide cases of extension of tenure, under the Central Staffing Scheme(s) or relevant Central tenure norms, of officers belonging to the All India Services and other Group ‘A’ services beyond the prescribed limits;
(v) To decide cases relating to lateral shift of officers serving on central deputation;
(vi) To decide cases of premature repatriation of officers serving with the Central Government to their parent cadre or Department;
(vii) To decide cases relating to inter-cadre deputation or transfer of All India Services officers;
(viii) To decide cases of extension of service beyond the age of superannuation under Fundamental Rule 56(d);
(ix) To decide all cases of disagreement with the recommendations of the Search-cum-Selection Committee constituted in accordance with the statutory requirements or the relevant instructions of the Department of Personnel and Training in respect of officers of the rank or pay (pay band plus Grade Pay) equivalent to or higher than a Joint Secretary of the Central Government;
(x) To consider and decide representations, appeals and memorials from officers of the rank or pay (pay band plus grade pay) equivalent to or higher than a Joint Secretary in the Central Government, except from those working in the cadre, against adverse remarks;
(xi) To decide all cases of disagreement, including in the order of preference of the Public Enterprises Selection Board panel, between the administrative Ministry or Department concerned and the Public Enterprises Selection Board;
(xii) To decide all cases of inter-company transfers of Chairman, Managing Director and Functional Directors of Public Sector Undertakings between holding companies and subsidiaries and within the subsidiaries, including memorandum of understanding signing Public Sector Undertakings;
(xiii) To decide all cases relating to intra-company transfer of Managing Director and Functional Directors of Public Sector Undertakings, including Memorandum of Understanding signing Public Sector Undertakings; and
(xiv) To decide cases relating to employment or re-employment of any person, who has attained the age of superannuation, in any Department of the Government of India, any State-owned public corporation, company or enterprise, in a post, appointment to which requires approval of the Appointments Committee of the Cabinet.
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