ORDER BY GOVERNOR

                                                                                                                    NOTIFICATION

                                                                                                                                                                                                                                                                                                                         Dated Dispur, the 24^th June, 2019

 

No.PE.28/2016/238 : The Governor of Assam is hereby pleased to adopt a policy relating to the State Public Sector enterprises, called “The Public Enterprises Policy, 2019” in order to improve the performance of the Public Sector Enterprises in the State of Assam through reform measures, effective administration, management and control. The “Public Enterprises Policy, 2019” provides specific guidelines for all Government Departments on the matter of the State Public Sector Enterprises. These guidelines supersede all earlier instructions/guidelines/ circulars in the matter /subject and come into immediate effect as the “Public Enterprises Policy, 2019”.

 

All Concerned Departments will take immediate necessary action to implement the Policy and all guidelines laid down therein.

 

 

                                                                                                                                                                                                                                                                               Sd/-

                                                                                                                                                                                                                                            Commissioner & Secretary to the Govt. of Assam

                                                                                                                                                                                                                                                            Public Enterprises Department

 

Memo No. PE.28/2016/238–A Dated Dispur, the 24^th June, 2019

Copy for information to :-

1. The Secretary to the Governor of Assam, Raj Bhawan, Guwahati-1.

2. P.P. S to Chief Minister, Assam, Dispur.

3. P.S. to Speaker, Assam Legislative Assembly, Dispur.

4. P.S . to all Ministers/Ministers of State, Assam.

5. P.S. to Chief Secretary, Assam, Dispur.

6. P.S. to all Addl. Chief Secretaries, Assam, Dispur.

7. All Principal Secretaries/ Commissioner and Secretaries/ Secretaries to the Govt. of Assam.

8. Political (Cabinet Cell) Department for kind information with reference to their U.O No.PLA(V)303/2019/1 dated,19^th June, 2019.

9. All Administrative Departments

10. The Superintendent, Assam Government Press, Bamunimaidam, Guwahati-21 for favour of Publication of the Notification in the next issue of the Assam Gazette. Further, Assam Govt. Press is requested to print 300 copies of the policy and arrange to supply within 15^th July, 2019.

 

                                                                                                                                                                                                                                                 By order etc.,

 

                                                                                                                                                                                                                                                         Sd/-

                                                                                                                                                                                                                   Joint Secretary to the Govt. of Assam                                                                                                                                                                                                                                                                                                                              Public Enterprises Department

 

PUBLIC ENTERPRISES POLICY, 2019

 

 

1. PREAMBLE

1. 1. The policy emanates from the commitment of the government to bring about efficiency in management and to control the State Public Sector Enterprises (PSE).

   2. Government is fully conscious of its huge investment in the Public Sector Enterprises in the form of capital, loan and retained earnings for the development of the State by making the Public Sector Enterprises as engines of growth.

   3. Government also recognises the role of Public Sector Enterprises in securing balanced regional development, creating new skills and competencies, generating new employment potential and meeting obligations towards the society through Corporate Social Responsibility.

   4. To fulfil these responsibilities, Government has taken upon the task of framing the Policy for Public Sector Enterprises which lays down guidelines for creation and governance of Public Sector Enterprises, investment and disinvestment in these Enterprises, closure of these Enterprises and disposal of assets of the closed PSEs, maintenance of accounts and payment of dividends as well as optimal use of human resource through manpower restructuring in these PSEs.

2. CONTEXT

1. 1. In the post-independent period, India was crippled with grave socio-economic problems, such as inequalities in income & low levels of employment, regional imbalances in economic development, lack of trained manpower, weak industrial base, inadequate investments and infrastructural facilities, etc.

1. 1. The Government, therefore, adopted the policy of planned economic development with a road map for growth and development envisaged through Public Sector Enterprises for self-reliance and growth.

1. 1. The Industrial Policy, 1948 envisaged active engagement of the State in development of industries through Public Sector Undertakings/Enterprises for the socio-economic development of the country. The Public Sector Enterprises , thus contributed towards the economy of the country by investing in infrastructure, creating new skills and competencies, generating new employment, meeting social obligations by developing backward regions including provision of preferential employment to backward and deprived communities etc.

1. 1. There are, at present, 39 No.s. of Public Sector Enterprises in Assam under various Administrative Departments. Intervention of Public Sector Enterprises in Assam has become essential as private players are reluctant to invest in Assam due to longer gestation period and low rate of returns.

 

 

Public Sector Enterprises can provide more employment opportunities and capital flow in the State. Moreover, in social engineering sector where commercial viability is less or minimum, Public Sector Enterprises play a vital role for socio-economic development in the State.

1. 1. But there has been recurring drainage of resources from the State Exchequer due to perennial losses in many of the Public Sector Enterprises in the State. The Government of Assam, therefore, realises the necessity to improve the performance of the Public Sector Enterprises by framing a policy for administering the Public Sector Enterprises in the State.

1. 1. Since involvement of stakeholders is crucial in any policy making process for making the policy acceptable to all in general and the stakeholders in particular, it has been decided to involve the stakeholders i.e. Industries & Commerce Department, Finance Department, Personnel Department, the Institute of Company Secretaries of India and Federation of Industries & Commerce of North Eastern Region etc in the policy making process.

1. 1. Keeping this necessity in view, the Government of Assam has decided to formulate a State Policy for Public Enterprises and assigned the task of preparing the policy to Public Enterprises Department.

3. DEFINITION

State Public Sector Undertaking or State Public Sector Enterprises are the body corporate i.e Companies / Corporation/ Cooperative Societies incorporated under the Companies Act or created by statutes or entities registered under the Assam Cooperative Societies Act,1949 in which not less than fifty-one per cent of the paid-up share capital is held by the State Government, or jointly by State Government and Central Governments, or partly by the State Government and partly by one or more State Governments undertakings , that includes a company which is a subsidiary company of such a Government company and having a commercial angle in its operation.

4. GOAL AND OBJECTIVES

1. 1. GOAL

The Goal sought to be achieved through this policy is to improve performance of all the Public Sector Enterprises in the State through reform measures, effective administration, management and control of Public Sector Enterprises.

1. 1. OBJECTIVES

To realise the Goal, the following objectives need to be achieved under a common   policy framework for :

4.2.1 streamlining the process of creation of Public Sector Enterprises.

4.2.2 putting in place an effective mechanism for governance of Public Sector Enterprises and infusing professionalism.

4.2.3 setting principles for investment and disinvestment in Public Sector Enterprises.

4.2.4 institutionalising performance management and monitoring system in Public Sector  Enterprises and  their evaluation

4.2.5  optimising human resource & manpower restructuring in the Public Sector            Enterprises

4.2.6  reforms in PSEs through innovation/modernization/revival/ closure of sick Public            Sector Enterprises etc.

4.2.7 timely adoption of annual accounts of Public Sector Enterprises.

5. STRATEGY AND ADMINISTRATIVE MEASURES

1. 1. CREATION OF NEW PSEs

5.1.1 If the State Government decides to create any new PSE under any department, the concerned Administrative Department shall have to move Public Enterprises Department with a detailed feasibility report.

5.1.2 The feasibility report shall be examined in the Public Enterprises Department and the proposal will be placed before the Public Investment Board (PIB) for approval.

5.1.3 After getting recommendation of PIB, the concerned Administrative Department will prepare a Cabinet Memorandum and place it before the Cabinet for approval.

5.1.4 After obtaining Cabinet approval, the PSE shall be created through a Notification to be issued by the Administrative Department.

1. 1. GOVERNANCE OF PUBLIC SECTOR ENTERPRISES

5.2.1 The Public Sector Enterprises of the State are to be governed under the applicable statutes. The Principles of Corporate Governance and guidelines issued by Public Enterprises Department from time to time covering the aspects of composition of Board of Directors, code of conduct of the Directors, accounting principles and corporate social responsibility of the Public Sector Enterprises etc shall be followed and complied by the PSEs.

5.2.2 Each State PSE shall ensure compliance of Performance Audit and report regarding the governance of the PSE as per Corporate Governance Guidelines in its Annual Report and submit it to Public Enterprises Department each year. P.E Department would frame a modified Corporate Governance Guidelines based on Companies Act. 2013.

5.2.3   Corporate Social Responsibility: Section 135 of the Companies Act 2013 lays down the qualifying criteria to undertake Corporate Social Responsibility(CSR) activities and, interalia, specifies the broad modalities of selection, implementation and monitoring of the CSR activities by the Boards of Directors of companies. CSR has become mandatory part of Corporate Governance in the Companies.

It would be mandatory for all State PSEs which qualify for the criteria as laid down in Section 135(1) of the Act, to spend at least 2% of the average net profits of the three immediately preceding financial years in pursuance of their CSR activities as stipulated in the Act and the CSR Rules.

State PSEs (under any statues & having operating profit) that do not meet the qualifying criteria under the Companies Act, 2013  but have made average net profit of more than Rs 100.00 lakh in the preceding 3 years shall also be required to spend at least two per cent of the average net profit of preceding three years on CSR activities subject to provision in their Memorandum of Association/ Article of Association. PSEs having accumulated loss are excluded from the purview of the CSR.

All PSEs shall have to adopt a CSR and Sustainability Policy with the approval from their respective Boards.

5.2.4 The concerned Administrative Department shall ensure compliance of all the guidelines/circulars issued by the Government in respect of the PSEs under its administrative control.

1. 1. INVESTMENT AND DISINVESTMENT IN PUBLIC SECTOR  ENTERPRISES

5.3.1 The concerned Administrative Department of the PSE shall conduct a detailed study on the requirement of capital investment in the PSE and refer the proposal to Public Enterprises Department with TEFR/DPR etc.

5.3.2 The concerned Administrative Department shall state specifically in the investment/financing proposal involving Rs. 5 (five) crores and above in the form of equity/term loan/capital grants or subsidy towards revival/expansion/diversification/ technological upgradation projects etc in the PSE while referring the same to Public Enterprises Department for approval. The expansion projects need not be referred to PIB if the original project is cleared by PIB earlier. Threshold limit of 5 Crore will be dynamic one which will be revised periodically

5.3.3 Public Enterprises Department shall place the proposal of investment received from the concerned Administrative Department before the Public Investment Board (PIB).

5.3.4 In case of equity or loan investment in any PSE involving Rs.10 (ten) crores and above from the State Government or from externally aided fund, the concerned Administrative Department shall seek approval of the Cabinet after obtaining approval of PIB.

5.3.5 For providing guarantee against any loan to be undertaken from any financial institution for any expansion/revival/technology up-gradation or modernisation scheme of any PSE, the concerned Administrative Department shall examine the matter thoroughly and refer the proposal to Public Enterprises Department for placing the matter before PIB for approval. The concerned Administrative Department shall ensure the compliance of the instruction issued from time to time by the Finance Department.

            Also, for enhancement of limit of Authorised Share Capital of any PSE , the concerned Administrative Department shall examine such requirement of enhancement of limit of Authorised Share Capital and refer the proposal to Public Enterprises Department for obtaining approval of PIB. With the approval of the PIB, the concerned Administrative Department shall place such proposal before the Cabinet for approval.

5.3.6 In case of participation in Joint Venture Projects by any PSE or Government Department in a new project involving investment of Rs.5 (five) crores or more and in case of new projects undertaken by any PSE involving investment of more than Rs.5 (five) crores, the concerned PSE shall place the matter before the Board of Directors and with the recommendation of the Board of Directors shall refer the proposal to Public Enterprises Department through their Administrative Department for obtaining the approval of PIB as well as Cabinet approval wherever necessary. PSUs having satisfactory Networth with record of profit earning continuously for more than 5 years may be given autonomy for investment in Joint Venture Companies.

5.3.7 DISINVESTMENT:

(i)  Government of Assam recognises its investment in state PSEs as an important asset and to ensure that this assets rests in the hands of the people, the policy envisages to promote public ownership of state PSEs through systematic disinvestment in State Public Sector Undertakings.

(ii) While pursuing disinvestment through minority stake sale in the select profit making PSEs, the Government will retain majority shareholding, i.e. at least 51 per cent of the shareholding and management control of the profit making and potentially viable State Public Sector Undertakings .

(iii)  State PSEs with no accumulated losses and having earned net profit in three  preceding consecutive financial years are to be listed with stock exchanges for disinvestment purpose so as to infuse more professionalism, better governance and transparency in management of State PSEs.

(iv) The Public Enterprises Department will act as Disinvestment Secretariat to identify State PSEs in consultation with respective Administrative Departments for disinvestment.

(vi) Assessment of valuation of the assets of the PSE / valuation of the enterprises is essential for consideration of offloading the share holding of the Sate PSUs. The concerned PSUs shall engage valuers from the list of empanelled valuers through bidding process for valuation of the enterprises and its assets.

(v) Government may consider outright sale /privatization of PSUs in non-priority sector, which are running in perennial loss , for accelerating economic growth through the efficient use of resources of these PSUs to achieve optimum return.

(vi) Any disinvestment in any Public Sector Enterprises will be made only with the approval of the Cabinet on the recommendation of the Public Investment Board.

1. 1. INNOVATION , MODERNIZATION AND SYSTEM STANDARDIZATION

The State PSEs  shall focus on  Innovation, Modernization and System Standardization, Computerization of Accounts and MIS, Automation, E-governance, ISO Certification and Capacity building. All State PSEs must have their updated website within a period of one year from the date of adoption of the policy by the Govt. of Assam. Computerization of accounts in the State Public Sector Enterprises is to be completed within a period of one year from the date of adoption of the Policy. Government of Assam through Public Enterprises Department may provide financial assistance in the form of grants-in-aid to the financially weaker PSEs for such activities subject to availability of fund in the budget.

1. 1. MONITORING AND EVALUATION

4. 5. 1. All Administrative Departments having a PSE under its administrative control shall constitute a Project Management & Monitoring Committee with an officer from the Technical Cell of Public Enterprises Department as a member.

5.5.2. The project implementation of any new or joint venture projects recommended by PIB shall be monitored by the Project Management & Monitoring Committee periodically. Project Management & Monitoring Committee will be an oversight committee under the concerned Administrative Department headed by an officer not below the rank of Secretary to the Govt. of Assam.

5.5.3.  The Committee shall ascertain the status of progress of implementation of such projects to ensure completion of the projects as per schedule of implementation to avoid cost escalation.

5.5.4. Performance evaluation of the PSEs shall be done annually based on achievement against clear performance targets assigned to each PSEs along with a system of providing incentives. Each PSE shall come under the system of Memorandum of Understanding (MOU) and the concerned Administrative Departments shall ensure execution of MOUs every year within the 1^st quarter of each Financial Year.

5.5.5.  The Public Enterprises Department shall monitor the compliance of the MOU by  the PSEs and their Administrative Departments and evaluate their performances.  On the basis of the performance score in MOUs, the PSEs shall be  categorized  by the Public Enterprises Department and awards shall be conferred  each year to  the best performing PSE. Performance linked incentives shall also  be given to  the employees of the eligible State PSEs. P.E Department may engage an  independent expert Agency for assessment of annual performance of the  State  PSEs based on MOU score.

4. 5.   HUMAN RESOURCE AND MANPOWER RESTRUCTURING IN PSEs

 The Administrative Departments shall make a comprehensive review of the roles  and requirements of the existing posts and the eligibility criteria for these posts in  the PSEs under their administrative control and submit it to Public Enterprises  Department for obtaining the approval of the Public Enterprises Selection Board  (PESB).

 

4. 5. 1. SELECTION AND APPOINTMENT OF DIRECTORS/CHAIRPERSON/ MANAGING    DIRECTOR.

Rules of Executive Business 1968, vide para 54.c(b) provides that all   appointment to the Board of Directors and Chief Executive of State PSUs   should  be made in consultation with Public Enterprises Department.

5.6.1(i) In case of appointment of the official Directors on the Board of Directors in a  PSE  as a representative of a Department, the concerned Department shall  nominate  an officer in the rank  of Joint Secretary and above with the  approval of the  Hon’ble Chief Minister . The concerned Administrative  Department on receipt  of nomination from the concerned Department shall issue  notification for appointment of the nominated officer as a Director on the  Board  of Directors of  the PSE.

5.6.1(ii)  In case of appointment of non-official Director , the   concerned Administrative Department shall appoint non official part-time director on the Board of Directors of the State PSEs in accordance with the provisions laid down in the Articles of Association or Bye-Laws of the PSE with due approval of Hon’ble Chief Minister. Public Enterprises Department may prepare a Data Bank of eligible candidates for appointment as non-official Directors through open advertisement on the criteria to be fixed by the Public Enterprises Selection Board. The Administrative Departments may use this Data Bank created by Public Enterprises Department.

5.6.1(iii)  The Managing Director of a State PSE shall be appointed by the concerned Administrative Department as per recommendation of Public Enterprises Selection Board(PESB) . PESB is headed by the Chief Secretary as Chairperson having members from Transformation & Development Department, Personnel Department, Finance Department. Public Enterprises Department, concerned Administrative Department and an Expert Member.

The Administrative Department is required to submit the proposal for selection of candidates for the post of Managing Director to Public Enterprises Department well in advance before a position becomes vacant, preferably 3 months before the date of falling vacant. On receipt of such proposal, P.E Department shall prepare a draft advertisement for the post and send it to the concerned Administrative Department. The Administrative Department after verification of the Advertisement shall publish the same in print and electronic medium for inviting applications for the post.

The Administrative Department shall forward the application of the eligible candidates to the Public Enterprises Department for placing before the PESB.

Public Enterprises Department shall place the proposal before the PESB within 21 days from the date of receipt of the applications from the Administrative Department and communicate the recommendation of PESB to the Administrative Department. The Administrative Department shall accordingly appoint the candidate recommended by the PESB with due approval of Hon’ble Chief Minister subject to vigilance clearance and compliance of statutory formalities.

The tenure of a Managing Director shall be 3 years which shall be extendable by another 2 years or up to superannuation which ever is earlier subject to satisfactory performance. The age of superannuation of the Managing Director shall be 60 years.

For professional reasons no Government officer should be appointed as Managing Director of State PSEs, atleast of a profit making PSUs if otherwise not provided in the Bye-law, Article of Incorporation etc. as per statutes under which these PSUs are created. Respective Administrative Department will appoint professional Managing Director in the profit making PSEs within a period of six months from the date of adoption of the Public Enterprise Policy by the Government.

In case Govt. has to appoint Govt. officer as MD, it should be for a limited period and in no case a Government officer should be Managing Director in more than one PSE at a time.

In case of termination of service of an Managing Director appointed through selection by PESB, the matter shall be referred to Public Enterprises Department for concurrence of the proposal of termination by PESB.

5.6.1(iv) The post of General Manager (GM)/ Chief General Manager (CGM)/Group General Manager (GGM) shall be filled-up through selection by PESB either from open market or from the eligible senior officers of the PSE or through lateral entry as per  provision in the service Rule/Staff Regulations of the PSE and tenure of his/her  appointment shall be as per provision in the Service Rule of the PSE. PSEs having turn over more than Rs 250.00 Cr per annum may create the post of  Functional  Director with the approval of Finance Department on    recommendation of  PESB. Public Enterprises Department shall formulate necessary modalities for selection and appointment of Functional Director in the State PSUs.

5.6.1(v) The Non-Executive part-time Chairperson to the Board of Directors of the state PSEs  shall be appointed by the concerned Administrative Department in consultation with Public Enterprises Department and with the approval of the Hon’ble Chief Minister, Assam.

5.6.2 QUALIFICATION OF OFFICIAL AND NON-OFFICIAL DIRECTORS OF  THE PSEs.

5.6.2(i)  The official Director to the Board of Directors should be an officer of the rank   of Joint Secretary and above of the concerned Administrative Department.

5.6.2(ii)  The non-official Directors of the Board of Directors shall fulfil the criteria and  qualification set for the Public Sector Enterprises setup under various  statutes/rules   etc. The Non official / Independent Directors must be a  qualified professional having domain knowledge in Finance/Technical/  Management   aspects of the  relevant PSU.

5.6.2(iii) The minimum qualification of the Managing Director of a PSE should be graduation with a good academic record from a recognised university/institution. He/she should possess adequate experience at senior level of the   management in a large organisation of repute or in Govt. Department. Persons with Technical/Professional qualification and having exposure to Corporate Production, Marketing, Finance , HR and Public Administration shall have added advantage in respect of selection for the post of M.D. Qualification, experience, age etc for the post of Managing Director shall be as prescribed by PESB or by the Administrative Department.

4. 5. 1. ROLE & RESPONSIBILITES OF THE MANAGING  DIRECTOR/CHIEF  EXECUTIVE OFFICER AND PART-TIME  CHAIRPERSON  OF THE PSEs

5.6.3(i)    The MD/CMD/CEO shall be responsible for the efficient functioning of the PSE for achieving its corporate objectives and performance parameters.

5.6.3(ii)    The part-time Chairperson and the Managing Director/Chief Executive of the PSE shall work in close coordination and mutual  cooperation for  the best interest of the PSE.

5.6.3(iii)    The part-time Chairperson should guide the SLPE through its BoDs on performing the role entrusted to them in respect of formulating corporate policy, corporate plan and their implementation & evaluation with a view of improving the enterprise's performance. It is desirable that  the part-time Chairperson should not directly intervene in regular  functioning of the SLPE.

 

The honorarium, perks and other facilities entitled to the part-time Chairperson/Vice Chairperson of the SLPE is subjected to the State Government instructions/notification issued from time to time and financial position of the organisation. All the State PSEs shall ensure compliance of such instruction strictly.

 

The part-time Chairperson/vice chairpersons shall practice economy while availing the perks and other facilities approved by the State Government to him / her in the best interest of the organisation.

 

6. REVIVAL/CLOSURE OF SICK PSEs AND DISPOSAL OF ASSETS THEREOF

6.1. A PSE shall be considered sick if its accumulated losses is equal to 50% or more of its average net worth during the 4 years immediately preceding the financial year .

6.2. The concerned Administrative Department shall engage an Expert having domain  knowledge to carry out a study on the prospect of the revival of such sick PSEs . If the Expert recommends for revival of the sick PSE , the concerned Administrative Department shall move a proposal to P.E Department for recommendation of Task Force for PSE Reforms and approval of PIB. With the approval of PIB, the concerned Administrative Department shall obtain Cabinet approval on revival proposal. Government of Assam will provide necessary financial support and other non financial support if required for revival of  the potentially viable sick PSE.

6.3. If the Expert recommends that the revival of the PSE is not possible, the concerned Administrative Department shall move a proposal to Public Enterprises Department for closure of the PSE.

6.4.  The proposal for closure of the PSE shall be placed by Public Enterprises Department before the Task Force for PSE Reforms for recommendation.

6.5.      After obtaining the recommendation of the Task Force for PSE Reforms, the concerned Administrative Department shall place the proposal for closure before the  Cabinet for approval as per terms and conditions of the applicable statues.

6.6.    On receipt of the proposal for disposal of assets of closed PSEs from the concerned Administrative Department, the Public Enterprises Department shall place it before  the Task Force for PSE Reforms headed by Chief Secretary of the State for approval. The assets of  closed PSEs shall be disposed in a transparent manner through bidding process for  movable assets.

7. ACCOUNTS AND AUDIT OF PUBLIC SECTOR ENTERPRISES

All PSEs shall complete their audited accounts of each financial year within 6 (six) months from the date of closure of the financial year and submit their accounts in  Annual Report Form duly adopted in the AGM to the Assam Legislative Assembly through their Administrative Department for onward examination by the Committee on Public Undertakings ( CoPU) . In respect of the defaulting PSEs, the  Management of the PSE shall  be accountable for non-compliance in this respect.

 

7. PAYMENT OF DIVIDEND BY THE STATE PSEs

As Government of Assam is the major shareholder of the State PSEs, the PSEs having no accumulated loss and having operating profit shall pay a minimum dividend to its  shareholders out of the profit earned by the PSE after payment of payable tax by the   PSE during the preceding Financial year provided such provision is laid down in the  Articles  of  Association/ Articles of Incorporation of the PSE.

7. PAYMENT OF INCENTIVES TO THE EMPLOYEES

Each profit-making PSE shall grant Performance Based Incentive to its employees out  of the profit earned to motivate them for higher productivity as per following  terms  and conditions:-

6. 1. the total amount of Performance Based Incentive granted in a financial year by the PSE shall be a maximum of 3% of the net profit earned by the PSE in that financial  year.

   2. a specific percentage of basic pay subject to the maximum of 30% of the monthly Basic Pay may be granted as Performance Based Incentive to an individual  employee of the PSE as may be determined by the BoD.

   3. Performance Based Incentive shall be given only if the concerned PSE has no  accumulated losses.

   4. the total amount given as Performance Based Incentive granted in a financial year by the PSE shall not exceed the dividend amount paid for that financial year.

   5. Performance Based Incentive shall not be taken as granted on permanent basis to the employees but is subject to review by the BoD every year based on overall  performance of the organisation.

   6. Performance Based Incentive may be discontinued in a given financial year if  the organisation does not make any profit.

   7. the BoD of the PSE is to formulate a suitable system of performance appraisal with the approval of the concerned Administrative Department for each level of employees and each individual employee at the beginning of each financial year indicating the key performance Indicators in respect of each individual employee   and division of the organisation.

(h) the Managing Directors and the full-time Financial Directors also will be                         eligible  for  the Performance Based Incentive in any given financial year.

7. STAFF RULES, SERVICE RULE/MEDICAL RULES OF THE         EMPLOYEES OF STATE

All the PSEs shall have their Staff Rules/Service Rules/Medical Rules of the employees prepared and put in place . A framework of the  Service Rules/ Medical Rules will be provided by the Public Enterprises Department.

 

7. VOLUNTARY RETIREMENT SCHEME IN PSEs

Public Enterprises Department had issued a revised Policy on Voluntary Retirement  Scheme for the employees of the State PSEs vide PE.4/2006/28 dated 15^th February,  2006.  All the State PSEs are to implement the Voluntary Retirement Scheme as per  that existing policy. Public Enterprises Department shall formulate a revised VRS  policy with suitable modifications. Provision for Compulsory Retirement of  unproductive employees has to be incorporated in the VRS policy . The fund required  for the VRS payment shall be made available by the PSEs from their  own resources.

 

7. RIGHT TO INFORMATION, CITIZEN CHARTER

The State PSEs shall comply with the provision under RTI Act, 2005 and furnish information to the applicants under RTI Act, 2005 and publish the Annual Report on the RTI. Also the State PSEs will have their Citizen’s Charter with a Grievance Redressal mechanism. The Administrative Departments will regularly supervise the  compliance in this respect.

 

 

7. REVISION OF PAY IN STATE PSEs

Finance (PRU) Department in consultation with the Public Enterprises  Department shall  finalise the revision of pay of the State PSEs with the  approval of the   Government of Assam and issue necessary notification for  such revision as and  when  the need arises in line with pay revision of  the employees of the Government   of Assam. No revision of pay will be  allowed without regularization of   Accounts in the concerned PSE.

All the  PSEs shall strictly follow the provisions of the notification issued on  pay revision.

14. SUSTAINABLE DEVELOPMENT GOAL

"ASSAM - 2030 in light of SDGs" is the Vision of the Government of Assam for a developed and prosperous State with happy, healthy, caring, cared for and gainfully employed people, through achievement of the 17 Sustainable Development Goals. The State Government is fully committed to the SDGs, and has decided to achieve all the Goals in Assam by 2030, through a major all-round initiative.

All the State PSEs shall prepare their strategy and action plan to align their activities with the SDG Goals supplementing their Administrative Department.

 

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