Overview

After many decades of existence for the public sector in India, there are still many questions unanswered. Though the Government has delegated financial and administrative powers to PEs (public enterprises) to a great extent to provide considerable financial leverage for taking prudent decisions, the results are not satisfactory. It has been several decades since the MoU system has been introduced in India in the hope of incentivising performance, yet there are considerable numbers of PEs which are languishing in the fair and good category in terms of performance. Performance challenges still exist in public sector enterprises which are mainly due to inadequate systems, processes, and latest technology. The focus now is on making the PEs more efficient and competitive so that they can face the stiff market competition. There is a clear direction that has been set with the Performance Management Division taking lead and rolling out the overarching PMS and implementing RFD. The RFD system provides a comprehensive framework of performance measurement and management for all the government departments/ministries, to develop performance plans in sync with the national priorities and prog-rammes. With the RFD system in place, it will give greater stability to the MoU system and make it sustainable.

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R.K. Mishra, Senior Professor and Dean is Director, Institute of Public Enterprise (IPE), Hyderabad, is a graduate of International Management Programme, SDA Bocconi, Milan, Italy. He has been a fellow of the British Council and the Commonwealth Secretariat. He has worked on key assignments with Indian government including Ministry of Finance, Ministry of Power, Ministry of Trade and Commerce, Ministry of Heavy Industry and Public Enterprises, and Ministry of Finance (Department of Disinvestment). He has also worked extensively with international organisations including OECD, United Nations University-World Institute for Economic Development Research, International Civil Service Consortium. His current areas of interest include: corporate finance, corporate governance, international management, management controls, management education, infrastructure development, restructuring, economic reforms, social sector management, good governance and economic environment. Geeta Potaraju is currently working as an Assistant Professor at IPE, Hyderabad. She has a PhD in Management with specialisation on public sector enterprises. She has over 15 years of experience in development consulting. Her areas of interests are: participatory governance, health system strengthening, administrative and institutional reforms. Dr Geeta has been involved in a number of key assignments with DFID, UNDP, World Bank, World Bank Institute, Family Health International, Government of India, and state governments. She is an expert on participatory governance tools like Citizens Charters and Right to Information. She has extensively worked on issues of access to information and has developed training manuals for both the supply side as well as the demand side stakeholders.

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