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CVC moots Rs 10 lakh bond to check attrition in PSEs

The government is considering imposing strict measures, including a bond of at least Rs 10 lakh, to deter senior employees of public sector enterprises (PSEs) from joining private firms.

twitter-logoPTI | August 23, 2011 | Updated 18:07 IST

The government is considering imposing strict measures, including a bond of at least Rs 10 lakh, to deter senior employees of public sector enterprises (PSEs) from joining private firms.

Official sources said the preventive measures were being mooted on the recommendation of the Central Vigilance Commission, which has suggested a minimum bond of Rs 10 lakh on all officers to the level of Directors and above if they leave government-controlled firms to private organisations seeing greener pastures.

However, the Department of Public Enterprise (DPE) is yet to take a final call on the Commission's suggestions.

"The measures are being taken as there have been instances in which officials have left public sector units (PSUs) and joined private firms midway or soon after their retirements.

"Since, they know functioning of concern department they had worked with, it was essential to restrict their move as that may lead to corrupt practices," a CVC official said.

When contacted, a DPE official said, "There was no ready figure available on the attrition rates".

As per government guidelines, Directors on PSU boards are prohibited from joining a firm with which the concerned enterprise has had a business relationship for two years after they quit or retire. But they can join competitors.

Senior government officials, however, suggest stricter ways to check the trend.

"There are number of people joining private firms from PSUs. There is a need to give more thought on this because merely Rs 10 lakh bond would not be that much effective. There is a need of stricter measures to stop it," said U D Choubey, the Director General of SCOPE, an apex body of public enterprises.

The move assumes significance as many government officials have been joining private firms at hefty packages.

For instance, a former chairman of the Gas Authority of India (GAIL) joined British Gas India. Similarly, former chief of Telecom Regulatory Authority of India (TRAI) and Indian Oil Corporation (IOC) heads have joined leading public relations and private firms respectively.


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