Public Sector Enterprises Newsletter, January 2014
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Public Sector Enterprises Newsletter, January 2014

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Bi-monthly newsletter of CII on public sector enterprises covering news, analysis, sectoral trends and CII's activities.

Bi-monthly newsletter of CII on public sector enterprises covering news, analysis, sectoral trends and CII's activities.

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Public Sector Enterprises Newsletter, January 2014 Public Sector Enterprises Newsletter, January 2014 Document Transcript

  • PSE Newsletter The Bi-Monthly Newsletter January 2014 • Vol 5 No. 1 From the Chairman’s Desk . . . Dear Colleagues, W elcome to the January 2014 edition of the newsletter of the CII Council on Public Sector Enterprises. This year promises to be eventful for the PSEs in more than one way. We are seeing initial signs of rebuilding of confidence among businesses and industry. RBI also in its latest assessment has indicated a gradual recovery. There are some green shoots that are emerging in terms of macro environment also. With GDP growth hovering around 5%, the year 2014 comes with a host of challenges for not only the public sector but the industry as a whole. PSEs have been a source of financial support to the government throughout the bygone year in an environment full of uncertainty and subdued sentiment. The overall capital investment during April-June period of the year 2013-14 was actualised to the extent of 94% of the annual target. Going forward, the economy over medium to long term is likely to benefit from the expeditious implementation of the approvals accorded by CCI to fast track the held up projects, domestic structural reforms in the direction of easing some supply-side constraints, export growth due to positive trends seen in global economy and an expected re-look by RBI into its monitory policy. CII PSE Council co-organized CII Global PSE Summit along with the Department of Public Enterprises, Ministry of Heavy Industries and Public Enterprises to initiate the next phase of PSE reforms in the country to enable them to become multinationals, meeting the associated challenges successfully for their own growth as well as the country’s development in the emerging global scenario. Hon’ble President of India, while inaugurating the Summit on 13th December 2013 in Vigyan Bhawan New Delhi, observed “As vital members of a thriving industry sector, PSEs must drive overall industrial and economic growth and to meet the demands of the market in a responsive manner”. It is therefore a compelling requirement for the PSEs to focus on technology development, innovation and development of new products to enhance their competitiveness to enter new markets and to promote growth. Hon’ble Union Minister for Heavy Industries and Public Enterprises, Shri Praful Patel, addressing the inaugural session appreciated the commendable role played by the PSEs in nation building and upheld that that both the public and private sectors are now contributing together in economic development of the country. It was felt across the board that reworking of the HR strategies & compensation structures at par with the private sector along with quicker decision making are the imperatives for sustained long term success for the CPSEs. Notwithstanding the multiple constraints, the public sector in India, has often been the innovation leader in building the country’s image as an emerging global power. For instance, ISRO pioneered the launch of an indigenous Polar Satellite Launch Vehicle-C25 (PSLV-C25) to Mars in November last year and the Geosynchronous Satellite Launch Vehicle D5 (GSLV) in January 2014 where, many of our CPSEs played a role in supplying critical components. PSEs have also been a source of employment to thousands of aspiring job seekers despite subdued economic environment when private sectors have taken recourse to downsizing their manpower strength and fresh recruitments are almost stalled. PSEs have shown an increasing trend in the generation of internal resources where 50% of the total capital formation of the country was contributed by the public sector alone. At this juncture Government needs to take a fresh look on the ownership of CPSEs in the line of ‘Roongta Committee’ recommendations to enable these veritable growth engines of economy focus on global scale in strategic sectors and play a leadership role in the international level. Sincerely, B Prasada Rao Chairman, CII Council on PSEs & CMD, Bharat Heavy Electricals Ltd Inside this Issue From the Chairman’s Desk…................1 CII Global PSE Summit........................2 PSE News Update...................................7 CSR Initiatives......................................11 Appointments........................................13
  • GLOBAL PSE SUMMIT Giving a power punch to PSEs {L to R , Mr M Narayana Rao, CMD, MIdhani & Chairman of steering Committee on PSE Global summit, Mr O P Rawat, Secretary, DPE, Mr Praful Patel, Minister, HI & PE, Hon’ble President of India, Mr S Gopalakrishnan, President , CII, Mr B P Rao, CMD, BHEL & Chairman , CII PSE Council, Mr Chandrajit Banerjee, DG, CII}. T he key challenge for Indian Public Sector Enterprises (PSEs) is to increase competitiveness, said Mr Pranab Mukherjee. More reforms needed to be undertaken, observed the Hon’ble President of India while inaugurating the Global PSE Summit organised by CII in association with the Department of Public Enterprises, Union Ministry of Heavy Industries and Public Enterprises, in New Delhi on 13 December. Union Ministry of Heavy Industries and Public Enterprises, said his Department will soon set guidelines to improve governance in PSEs in line with global best practices. There is a need to review the performance of PSEs and allow them to withdraw from areas that are better served by the private sector, he said. Mr S Gopalakrishnan, President, CII, and Executive Vice Chairman, Infosys Ltd, mentioned that proactive reform measures are being adopted by CPSEs on the lines the Roongta and Arjun Sengupta Committee reports. The Cabinet processing of recommendations, through steps such as fixing the tenure of three years for chief executives of PSEs to improve accountability, transparency and efficiency, were welcome steps, he said. The unlocking of PSE assets, both physical and human, will bring huge resources into the ambit of the national exchequer and raise the productivity of units that are currently stagnant due to various circumstances, he felt. Mr Gopalakrishnan also urged the Government to take a hard look at Article 12 which was restrictive of competitiveness for PSEs. Mr B P Rao, Chairman, CII Council on PSEs, and CMD, BHEL, said PSEs continue to operate under constraints. While the Government has taken According to Mr Praful Patel, Union several policy initiatives to strengthen Minister of Heavy Industries and the Public Sector, areas such as Public Enterprises, PSEs have Corporate Governance, Vigilance laid a strong foundation for India’s Mechanism, Human Resource industrial development. According Strategy, Joint Ventures, Partnerships, to him, both the public and private Procurement Policy, etc. merit urgent sectors are contributing equally to attention, he said. Urgent steps are India’s economic development. needed to create a level-playing field with their counterparts in the private Mr O P Rawat, then Secretary, sector, Mr Rao added. Earlier, in his welcome remarks, Department of Public Enterprises, Mr Chandrajit Banerjee, Director 2 PSE Newsletter
  • GLOBAL PSE SUMMIT General, CII, described PSEs as a formidable and integral force of the economy. Mr M Narayana Rao, Chairman, Steering Committee, CII Global PSE Summit, and CMD, Mishra Dhatu Nigam Ltd. delivered the vote of thanks, at the inaugural session. PLENARY SESSIONS {L to R – Mr Sutanu Behuria, Secretary, Department of Heavy Industry, & Mr Zheng Changhong, Chairman, CSR Corporation , China} The session on Strategic Role of State-Owned Enterprises (SOEs) in the Economy focused on the role of PSE and SOEs in achieving flexibility and sustainability of the economy. Dr Sutanu Behuria, Secretary, Department of Heavy Industries, Union Ministry of Heavy Industries and Public Enterprises, said SoEs have been established for strengthening and supporting the industrialization process especially in areas and sectors which require high investments, such the North Eastern region, and the Defence industry, where the private sector had its inhibitions, as maximizing profit was not the PSE objective. A background paper prepared by KPMG titled ‘Public Sector Enterprises in India: Transformation, Empowerment and Sustainability’ notes that China established a Stateowned Assets Supervision and Administration Commission (SASAC) which launched a process of redefining the relationship between the central government and the so-called ’central enterprises.’ Similarly, the report points out, in Singapore, Temasek Holdings was set up as the Government’s private investment arm and the holding company of Singapore’s PSEs. Mr Zheng Changhong, CEO, China CSR Corporation Ltd, explained China’s model to catalyze both the public and the private sector. Over the years, the Chinese Government has made significant policy changes, which have encouraged the public and private sector to work together. The private sector in China is a major supplier to PSE, and hence the goods manufactured are an amalgamation of public and private sector. The session on ‘Relationship of State-owned Enterprise with its Stakeholders,’ was chaired by Mr G C Pati, Secretary, Department of Defence Production, Union Ministry of Defence. Highlighting the expectations and relationship of PSEs with their various stakeholders, Mr A K Garg, CMD, MTNL, categorised the stakeholders as owner, customer, vendor and employee, and elaborated on their roles and expectations with PSEs. Plenary Session III, on Governance of SOEs, saw an informative debate on {L to R – Mr M Narayana Rao, CMD, Midhani, RAdm A K verma, CMD, GRSE, Mr Passang Dorji, Director, Druk holding & Investment, Bhutan, Mr R Srikumar, Vigilance Commissioner, Mr S K Roongta, Former Chairman SAIL & Head Al. & Power business, Sesa Sterlite Ltd. Mr Shardul Shroff, Managing Partner, Amarchand & Magaldas & Suresh a Shroff & Co, Mr B Prasada Rao, CMD, BHEL} PSE Newsletter 3
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  • GLOBAL PSE SUMMIT the need for greater autonomy, and the impact on their performance due to greater accountability to Government agencies such as CVC, among others. has serious ramifications for companies and directors, he said. 2) Become leaders in technology and innovation R Adm (Retd) A K Verma, CMD, Garden Reach Shipbuilders & Mr R Srikumar, Vigilance Engineers Ltd, reiterated the need for Commissioner, Central Vigilance more autonomy and a level-playing Commission, (CVC) who chaired field for SoEs. The inability to reward the session, said there were a lot of good performers hampers the efficiency expectations from SOEs. The Public of SOEs, he felt. Sector by its very definition is a ‘state’ and therefore accountable to the public, Thought Leaders Panel: he said. The strain on revenue due to Roadmap for Future severe taxations and conflict of interest between the owner (Government) and management, peculiar to PSEs, deprives them of a level-playing field. 3) Change HR policies to attract best talents Mr S K Roongta, former Chairman, SAIL, pitched for reforms in governance and functioning of Central PSEs. He also called for more proactive roles by boards, mergers and strategic partnerships, and better performance evaluation of employees. Bhutan has initiated reforms and brought some rethinking in the way of managing and governing PSEs, said Mr Passang Dorgi, Associate Director, Druk Holding and Investment (DHI), Bhutan. DHI, a single holding company for PSEs was set up in 2007, and all PSEs are consolidated into this one company i.e. DHI, which manages all the stakeholders, and is responsible for delivering the performance targets. Taking a fresh perspective on governance, Mr Shardul S Shroff, Managing Partner, Amarchand & Mangaldas & Suresh A Shroff & Co, discussed the new Companies Act, 2013, which makes comprehensive provisions for all listed and unlisted companies in the country. This new law 4) Aspire for the best pool of talent and follow the latest HR systems and recruitment practices 5) High-level of autonomy for PSEs is required to facilitate the other four reforms. Mr R S Butola, Chairman, Indian Oil Corporation Ltd, however, said scaling up Indian PSEs face a range of constraints including disparity in compensation structures. Indian PSEs, he said, often lose out on major contracts because of strict guidelines – something that delays renegotiation of terms. He favoured the creation of {L To R – Mr Adil Zainulbhai, Chair- an umbrella organisation or a trust to man – India, Mckinsey & Company, Mr oversee the working of all PSEs and Siddharth Zarabi, Editor- Economic state-owned wealth. Policy,CNBC TV 18, Mr R S Butola Chairman , Indian Oil Corporation Mr Nalin Shinghal, Chairman, Limited & Mr Nalin Shinghal, CMD, Central Electronic Ltd, regretted that procedural delays in appointments Central Electronics Ltd}. There was a lively discussion on the reforms PSEs need for good governance. Mr Siddharth Zarabi, Editor – Economic Policy, CNBC TV 18, the moderator, said the present market situation calls for dynamism by the country’s political leadership to make PSEs globally-competitive. Mr Adil Zainulbhai, Chairman, India, McKinsey & Company, outlined a five-point vision for PSEs: 1) Achieve world-class scale and promotions were affecting the talent pool of Indian PSEs. He called for a policy change in restrictive oversight mechanisms that make government employees, especially in senior levels, averse to risk taking and innovations. Taking a different view, Mr D Raja, MP Rajya Sabha, expressed his , reservation towards privatisation of PSEs. “I strongly support and believe in the Public Sector, which has played a major role in achieving our national and social goals,” he said, commenting on Government plans to aggressively PSE Newsletter 5
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  • PSE News Update Industries and Public Enterprises. Ms. Sidhu has a rich and diversified experience of working in senior positions, both at Central and State levels. During her career spanning over 30 years, she has served in responsible positions in various Government departments like Irrigation, Water Resources, Power, Tourism, Higher Education & Languages, Planning, Personnel etc. She also held the charge of Chief Electoral officer and Principal Secretary of Elections Department, Government of Punjab from October 2008 to April 2013. Ms. Sidhu has served as a Part-time {L To R – Mr Vimal Wakhlu, CMD, TCIL, Mr O P Rawat, Secretary, Departmnet official Director in HEC, HMT Ltd of Public Enterprises, Mr Ajay Shankar, Member Secretary, National Manufacturing and BHEL. Competitive Council Mr B Prasada Rao, CMD, BHEL, Mr R S Butola, Chairman, IOCL}. pursue privatization of PSEs. He, however, backed the view that PSEs need functional autonomy. “The Public Sector needs functional autonomy, and not political interference,” he said. PSE News Update CII welcomes Ms Kusumjit Sidhu as Secretary, Department of Public Mr Ajay Shankar, Member Secretary, Enterprise National Manufacturing Competitive Council in his valedictory remarks, said PSEs should take pride on what they have achieved and build a brand for themselves. PSEs should have a risktaking appetite, he said, adding they should encourage their executives to explore ‘disruptive innovation’ where new ideas can evolve. Mr Vimal Wakhlu, CMD, Telecommunications Consultants of India Ltd. felt that Indian PSEs could do better by drawing from the Chinese experience. China, he said, has a holding company for all PSUs that takes all the critical decisions in terms of investment and also provides monetary resources. He also called for technological upgradation in PSEs. Ms. Kusumjit Sidhu, a 1979 batch IAS officer of Punjab cadre has been appointed as Secretary in Department of Public Enterprises from 1st January 2014. Ms. Sidhu, was earlier holding the charge as Additional Secretary & Financial Adviser in Department of Industrial Policy and Promotion, Ministry of Commerce & Industry, Ministry of Micro Small & Medium Enterprises and Ministry of Heavy NTPC set to realise its hydel dream The filling-up operation at the reservoir in the Koldam project in Himachal Pradesh by NTPC is being described as a move that will enable the power major to achieve long-cherished hydel dream. Built in Bilaspur district and located six km upstream of Dehar power house of the Beas-Satluj Link Project (BSL), the 800-MW project will not only provide the much-needed generation capacity to help meet a sudden rise in demand in the Northern Grid, but will also enhance the life of the Bhakra reservoir by trapping the sediments of Satlej in Koldam. With an installed capacity of 800 MW (4x200 MW), the project will annually generate 3054 GWh electricity. OVL signs MoU with Ecuador for evaluating E&P opportunities ONGC Videsh Limited (OVL) and Ecuador have signed an MoU for studying exploration and production (E&P) opportunities in the oil-rich South American country. As per the PSE Newsletter 7
  • IICA Green Building, Manesar (Haryana) NBCC Building Landmarks. Creating Milestones E stablished as a Government of India Enterprise in the year 1960, National Buildings Construction Corporation Ltd. (NBCC), under the Ministry of Urban Development, Govt. of India, has been executing many a landmark projects in diversified areas both at home & overseas. Presently, its operations can be categorized into three main segments i.e.(i) Project Management Consultancy (PMC), (ii) Real Estate Development and (iii) EPC Contract. The company intends to continue to focus on performance & quality execution in order to gain maximum customers satisfaction in all the segment of its operations. NBCC is a certified ISO 9001:2008 company in respect of Project Management & Consultancy Services. The Corporation has land reserves of approximately 145.25 Acres. As on date, NBCC's Order Book stands at `15000 Crore. NBCC, a schedule 'A' CPSU, is presently operating in diversified areas that include sectors such as Real Estate-both Residential & Commercial, Power, Environment, Health Care, Institutions, Roads, Border Fencing, Mass Housing, Office Complexes etc. The Corporation has also earned a niche for itself recently, by constructing a Green Building named Indian Institute of Corporate Affairs (IICA), Manesar in the State of Haryana. Company's financial performance in the year 2012-13 has been impressive as compared to previous year, with improvement in Profit Before Tax from `289.83 crore to `301.64 crore and Profit After Tax from `190.17 crore to `207.50 crore NBCC Centre, Okhla (Delhi)- A Commercial Real Estate Project Cooling Tower & Chimney, Simhadri STPP (AP) TOWARDS GREEN Contributing towards the environment is a matter of pride and NBCC is pleased of being an eco-friendly organization. Company's all new projects are conceived/ conceptualized in line with Bureau of Energy Efficiency (BEE) and GRIHA norms. NBCC has successfully executed LEED certified first Green Building project called Indian Institute of Corporate Affairs (IICA), Manesar, with captive solar power, solar heating and energy saving system. This iconic Green Building for the Ministry of Corporate Affairs at Manesar, Haryana, was inaugurated by the Hon'ble Prime Minister of India in April, 2012. Indian Green Building Council of the Confederation of Indian Industry has awarded the prestigious LEED India Gold Rating to this building. Along with that, NBCC has also completed : • Central Services Officers Institute (CSOI) in New Delhi, a GRIHA 3-Star Building • National Institute of Food Technology Entrepreneurship and Management (NIFTEM) in Sonepat, Haryana • Aaykar Bhawan in NOIDA (UP). In July 2012, NBCC has also entered into MoU with The Energy and Resources Institute (TERI) for implementing projects of NBCC with GREEN compliance. TERI shall provide advice and consultancy to NBCC for undertaking future construction work as per Green Building and sustainable building concepts. NATIONAL BUILDINGS CONSTRUCTION CORPORATION LIMITED (A Government of India Enterprise) A Mini Ratna Schedule ‘A’ PSE 8 PSE Newsletter NBCC Bhawan, Lodhi Road, New Delhi-110 003,Visit us : www.nbccindia.gov.in An IS/ISO 9001:2008 Company (For Consultancy & Project Management Division)
  • PSE News Update MoU, Ecuador will share important information on oil and gas projects in the country with OVL. Brazil, Venezuela and Colombia contribute about 30 per cent of OVL’s oil production. The MoU was signed between the Coordinating Ministry for Strategic Sectors (MICSE), Ecuador and OVL in New Delhi with Mr Rafael Poveda Bonilla, Minister, MICSE, Ecuador, and DK Sarraf, MD & CEO, OVL, completing the formalities. Ecuador is a member of OPEC and produces about 500,000 barrels of crude oil daily. IOC tops Fortune India 500 list; 6 PSUs in Top 10 Indian Oil Corp (IOC) is the country’s biggest company in terms of annual revenue, followed by private sector giant Reliance Industries, according to the Fortune 500 list in India. Compiled by the global business magazine’s Indian edition, the list contains six state-run companies and four from the private sector. Significantly, the elite list has seven companies from the energy sector. IOC was the biggest with annual revenue of Rs 475,867 crore. Last year, the oil PSU ranked 83 globally. It is followed by BPCL (Rs 244,822 crore) at the third place and HPCL (Rs 217,771 crore) at fourth. Other companies figuring in the list include State Bank of India (5th), Tata Motors (6th), ONGC (7th), Tata Steel (8th), Essar Oil (9th), Coal India (10th) and NTPC (15th). SAIL’s expansion work to be completed by next year The massive expansion work at SAIL is likely to be completed by 2014, said the Union Steel Minister, Mr Beni Prasad Verma, in a reply to a query in the Lok Sabha. The expansion work is being undertaken to take SAIL’s steel production from 12.8 million tonnes per annum (mtpa) to 21.4 mtpa. In the current phase, SAIL will spend Rs 61,870-crore on modernisation and expansion of all its five integrated steel plants. Till October 31, 2013, SAIL had spent Rs 44,489 crore on modernisation and expansion. PM pitches for greater functional autonomy for PSEs The Prime Minister, Dr Manmohan Singh, once again rooted for greater functional autonomy for PSEs saying the state-owned entities have long enjoyed undue protection. The Prime Minister, who was speaking at the 3rd BRICS (Brazil, Russia, India, China and South Africa) International Competition Conference in New Delhi in November, also insisted that bureaucracy loosens control over PSEs to increase efficiency and promote a culture of competition across the board. “The government may own a public sector firm and exercise the normal rights of ownership. This does not mean that it should shelter the firm from competition as well,” said Dr Singh. Government ownership inevitably brings with it a bureaucratic style of decision-making and the result is that the enterprise lags in a competitive market, he added. “The solution lies in giving public sector firms greater functional autonomy and freeing them from bureaucratic control, and not in tolerating a slip in their competitiveness and then shielding competition,” he said. them from New PSE launch boosts India’s bullet train dream India’s bid to run bullet trains at a speed of 300-350 km per hour received a shot in the arm when the Railway Minister, Mr Mallikarjun Kharge, launched a new PSE called High Speed Rail Corporation of India Limited (HSRC) in New Delhi on October 29, 2013. HSRC was formed on the directions of the Ministry of Railways for development and implementation of high speed rail projects. This special purpose vehicle (SPV) was incorporated on July 27, 2012 as a subsidiary of Rail Vikas Nigam Limited (RVNL). Earlier, the Union Government had announced its decision to build High Speed Passenger Rail corridors for running trains at speed of 250-350 km an hour. Work is under way for developing two high-speed corridors. SJVN’s Khirvire Wind Power Project Commences Generation After achieving great success in hydro power generation, SJVN Limited has successfully commissioned 15 Wind Power turbines of its 47.6 MW Khirvire Wind Power Project in Ahmednagar District of Maharashtra. Each of the 15 Wind Power turbines has a capacity to generate 850 kV energy. The project will have a total 56 turbine units and will have annual energy generation of 85.65 MU of electricity. The 15 turbine units PSE Newsletter 9
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  • CSR Initiatives commissioned are located in village Khirvire/Kombhalane. The project has been linked to a 132 kV Transmission Line from Akole 132 kV Grid Sub Station to 2 x 50 MVA, 33/132 kV Wind Farm Pooling Station connecting 33 kV Line for Inter connecting the Maharashtra Grid. As per the execution schedule, the project will be fully commissioned during current financial year. The Wind Power Project at village Khirvire/Kombhalane, Distt. Ahmednagar, Maharashtra for a total capacity of 47.6 MW is being executed through M/s Gamesa Wind Turbine Pvt. Ltd., Chennai (A wholly owned subsidiary of Gamesa, Spain), as a contractor. crore. The Central Government has approved the revival of 44 CPSEs and closure of three CPSEs envisaging total assistance of Rs 28,354 crore. This has benefited about 216,000 employees. Under Dr Nitish Sengupta’s* guidance, BRPSE emphasised on giving more empowerment rather than on mere cash infusion. * Dr Nitish K. Sengupta – a man of versatile talent Four turnaround CPSEs awarded Four Central Public Sector Enterprises (CPSEs) received BRPSE (Board for Reconstruction of Public Sector Enterprises) Turnaround Awards 2013 for scripting inspiring stories of transformation – emerging from the pits of losses to the orbit of profits. Late Dr Nitish Sengupta*, chairman, BRPSE, gave away the awards to Bharat Coking Coal Ltd, National Film Development Corporation Ltd., National Project Construction Corporation Ltd, and SAIL Refractory Unit (Formerly Bharat Refractories Ltd) on November 1. The four CPSEs have posted profits for three consecutive financial years — 201011, 2011-12 and 2012-13. Their net worth has increased after receiving financial aid from government. So far BRPSE has recommended revival of 58 CPSEs and closure of six CPSEs envisaging total assistance of Rs 39,200 (Born: 8 July, 1933; Died: 3 November, 2013 Dr Nitish K. Sengupta, who died on 3 November 2013, was a versatile personality – administrator, academic, politician and author of a number of books. Educated at Presidency College, Kolkata, Dr Sengupta was a gold medallist in MA, and received his Ph.D in Management from Delhi University in 1972. Dr Sengupta headed the Board for Reconstruction of Public Sector Enterprises and was also a Member of the Second Pay Revision Committee of Public Enterprises and Member of the Expert Committee for Selecting Independent Directors for Navratna Public Sector Enterprises. As a civil servant, Dr Sengupta had an illustrious career holding important positions such as Revenue Secretary, Member Secretary, Planning Commission, Controller of Capital Issues and Secretary, Department of Supply in the Government of India and Secretary, and Director-General Tourism. Dr Sengupta was elected MP to the 13th Lok Sabha (1999-2004) and also served as a member of the Public Accounts Committee, Petitions Committee, and Standing Committee for Ministry of Railways and Consultative Committee for Ministry of Finance. He was a Visiting Faculty at IIMCalcutta & Ahmedabad, Delhi University and Administrative Staff College, Hyderabad. After retirement in 1992, Dr Sengupta took over as Director-General, International Management Institute, New Delhi. He was also as a Resource Person/ Faculty in a number of UN-sponsored seminars at Beijing, Moscow, Singapore, Turin, Bangkok, Seoul, Mumbai, etc., on public enterprise reforms and developing private sector initiatives. CSR Initiatives EIL wins Golden Peacock Award for CSR It was a proud moment for Engineers India Ltd (EIL) when it bagged the Golden Peacock Award 2013. The honour was conferred by the Institute of Directors in recognition of EIL’s significant work in Corporate Social Responsibility (CSR) initiatives and execution of projects undertaken to support the underprivileged sections PSE Newsletter 11
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  • Appointments of society. Ms Veena Swarup, Director (HR), received the award from Mr Nikhil Kumar, the Hon’ble Governor of Kerala, at the 8th International Conference on Corporate Social Responsibility in Bengaluru on 17 January 2014. According to an EIL press release, the company’s commitment to social causes is unwavering. It will continue to work as a responsible company contributing to society and the environment for a prosperous and sustainable future, it added. BEL sets up libraries in village schools In an attempt to encourage reading habits among children, Bharat Electronics Limited (BEL) teamed up with Sikshana Foundation and identified 50 government schools located in rural areas in Karnataka for setting up libraries. Significantly, BEL and Sikshana have asked pupils to set their school library themselves and arrange books in order. This has created fresh interests among the children. As part of its CSR activities, the Navratna PSE takes special initiatives in areas such as healthcare, education, rural development and environment protection. NTPC’ gift of dignity to persons with disabilities The District Rehabilitation Centre at NTPC, Tanda, is a source of succor for persons with disabilities (PWDs), especially those living in remote areas where rehabilitation services are virtually non-existent. Set up in association with the National Institute of Orthopedically Handicapped, Kolkata, the rehabilitation centre offers a variety of services which include screening camps PWDs, doctors’s advice, appliances and equipment needed for performing surgeries. According to reports, more than 7,100 PWDs have already benefitted from this centre. In a true sense, this is all about “giving thousands a life of dignity and possibilities”. NTPC also runs four such centres at Dadri, Korba, Rihand and Bongaigaon. Appointments S K Sharma takes charge as Chairman & Managing Director, Bharat Electronics Limited (BEL) DRDO. He has served as Unit Head at BEL’s Hyderabad plant and under his leadership, the Unit was conferred the prestigious Raksha Mantri Award for best performing Defence PSU. While Mr Sharma was General Manager (Network Centric Systems) and head of BEL’s Ghaziabad Unit ,as part of Quality initiatives, he spearheaded the Business Excellence process to attain second level recognition in the CII-Exim Award. Mr S K Sharma is a BEL nominee Director on the Boards of BEL’s Joint Venture Companies, GE BEL Pvt Ltd and BEL Multitone Pvt Ltd. S. Varadarajan takes charge as CMD, Bharat Petroleum Corporation Limited Mr S K Sharma took charge as Chairman & Managing Director (CMD) of Navratna defence PSE Bharat Electronics Limited (BEL) on January 1, 2014. He was Director (Bangalore Complex), BEL, before his elevation. Mr Sharma joined BEL in 1978 after graduating from the University College of Engineering, Bangalore. He completed his Masters in Business Administration while in service. He has wide experience in multiple disciplines covering Electronic Warfare, Avionics, Network Centric Systems, Radars and Components, having served in various capacities at BEL’s Bangalore, Ghaziabad and Hyderabad Units. Mr. S. Varadarajan has taken charge as the Chairman & Managing Director of Bharat Petroleum Corporation Limited (BPCL) on 1st October, 2013. An Associate Member of the Institute of Chartered Accountants of India and the Institute of Cost Accountants of India, Mr. Varadarajan has about 30 years of experience in all aspects of the oil and gas industry, ranging from Finance and Marketing to Corporate Strategy and Planning. During his tenure at Bangalore In addition, he enjoyed a stint as the Complex, he was responsible for Chief Financial Officer, Bharat Shell development of Airborne Radar Limited (BSL). Warning Receivers and Avionic products in collaboration with As Director (Finance) in 2011, he PSE Newsletter 13
  • Appointments had the overall responsibility of the Finance function, Information Technology and Corporate Planning in the Corporation. One of his noteworthy achievement was the successful completion of BPCL’s maiden issue of unsecured bonds in the international market. The issue, which was placed at a very fine rate of interest, was over-subscribed by 15 times – the largest for an offering by distinction of securing the University an Indian company in 2012. rank in his graduation and is also As Executive Director (Corporate a rank holder of the Institute of Finance), he had treasury Chartered Accountants of India. management, risk management, corporate accounts, taxation and Shri Madhusudan, started his budgeting under his purview. He has career at Bhilai Steel Plant and participated in several international after serving in various capacities conferences and road shows and for over 24 years, moved to IISCO constantly interacts with the investor Steel Plant, Burnpur, as General and analyst community.While at the Manager(Finance). Shri Madhusudan helm of Corporate Strategy, he was joined Rashtriya Ispat Nigam Limited instrumental in ensuring the seamless in 2009 as Director(Finance) and was instrumental in bringing about acquisition of Kochi Refineries. a number of structural changes Mr. Varadarajan is the Chairman of in Finance functions and made Petronet India Limited and Petronet significant contribution through CCK Limited. He is also a Director on prudent Financial Management. the Board of Bharat Oman Refineries He spearheaded the cost savings Limited, Bharat PetroResources movement across the organization and Limited, Matrix Bharat Pte Limited, evolved “a cost culture” for improving Bharat Stars Services Private Limited the bottom line. and Bharat Stars Services (Delhi) Shri Madhusudan is presently the Private Limited. Chairman of the Bird Group of Companies which includes the Orissa P Madhusudan takes charge Minerals Development Company as CMD, RINL Ltd. (OMDC), The Bisra Stone Shri P Madhusudan, Chairman-cum- Lime Company Ltd. (BSLC) & Managing Director, Rashtriya Ispat Eastern Investments Ltd. (EIL). He Nigam Limited, is a triple qualified is also member on the Board of the professional – a Chartered Accountant, International Coal Ventures Ltd. Cost Accountant and Company (ICVL) – a consortium of leading Secretary. Shri Madhusudan has the state-run firms, viz. CIL, SAIL, 14 PSE Newsletter RINL & NMDC, for acquiring coal assets overseas, apart from being the Chairman of RINL Board. An astute cricketer and connoisseur of classical and light music, Shri Madhusudan has a passion for allround development of the surrounding community and has initiated a number of multifaceted schemes in and around Visakhapatnam for inclusive growth. Atul Sobti takes charge as Director (Power), Bharat Heavy Electricals Limited (BHEL) On his appointment as Director on the Board of Bharat Heavy Electricals Limited (BHEL), Mr. Atul Sobti, has assumed charge as Director (Power) on 1st December 2013. Prior to this, he was Executive Director (Power) at BHEL, New Delhi and was also holding concurrent charge of Industrial Systems Group (ISG), a Bangalore based unit of BHEL. Mr. Sobti is a ‘Mechanical Graduate Engineer’ with ‘Post Graduation in International Management’ and
  • Appointments ‘Diploma in Project Management’. He was awarded the Gold Medal at IMI, while pursuing ‘Post Graduation in International Management’. He has also undergone Advance Management Training Programmes at IIM, Ahmedabad and Asian Institute of Management, Manila. During his tenure at BHEL’s International Operations Division, Mr. Sobti was a key contributor to a fifteen fold increase in its overseas business through securing and executing prestigious power projects and product orders from many countries including Oman, UAE, Iraq, Libya, China, Kazakhstan, Suriname, Bhutan, Sri Lanka, Egypt, Kuwait, Ukraine, etc. Mr. Sobti has been an active member of ‘CII National Committee of young Managers’, National level ‘CII Trade committee’ and Bangalore Chamber of Industry and Commerce (BCIC). He is also a regular faculty member at a number of reputed Management Institutes as well as BHEL’s Human Resource Development Institute. e-commerce and is also providing a range of tourism products, services and e-ticketing. Mrs. Amrit Brar is an economics scholar having done her post graduation and M.Phil from Panjab University, Chandigarh. She has also done her post graduation in Public Policy and Management from the University of Pittsburgh, USA under the Joint Japan/ in Central Coalfields Ltd. He worked World Bank Scholarship Program in in different capacities in CCL and in 1999. BCCL he played a vital role as GM/ CGM in Western Jharia Area, Eastern She joined the Indian Railway Traffic Jharia Area & BCCL HQ. Service in 1985 and has worked with the Indian Railways in various He is a life member in MGMI & Indian capacities in Operations, Commercial, Mine Manager’s Association. Marketing and IT Functions as well as with organizations such as FOIS Ms Amrit Brar takes charge where she handled IT projects. Her as Director (Tourism & 28 years of meritorious career covers Marketing), Indian Railways a wide range of challenging projects Catering & Tourism and assignments in Public Sector Corporation Ltd (IRCTC) Organizations and Government. Vinod Kumar Sinha takes charge as Director (Technical) RD & T, CMPDI. Shri Vinod Kumar Sinha has taken charge as Director (T)RD & T CMPDI, Ranchi zfrom 08/01/2014. He is a Mining Engineer from Indian School of Mines, Dhanbad & also having a First Class Mine Manager’s Certificate of Competency from DGMS, Dhanbad. Mrs. Amrit Brar has recently joined the Indian Railways Catering & Tourism Corporation Ltd (IRCTC) as Director (Tourism & Marketing) and is heading the Travel, Tourism and IT business He started his career as Executive Trainee of IRCTC, a Railway PSU which is today a premier name in the field of Mrs. Brar has published a number of articles in leading national & international journals such as Economic & Political Weekly, CTRAM Journal and Journal of Rail Transport Institute. In addition to being an eminent scholar and professional, she has also won a number of awards and accolades for outstanding performance during her service period so far. Amitabh Banerjee takes charge as Director (Finance), Konkan Railway Corporation Ltd Mr. Amitabh Banerjee, 1988 batch IRAS cadre, assumed the charge as PSE Newsletter 15
  • Appointments Director (Finance), Konkan Railway Corporation Ltd. He was working Aluminium Company Limited as Director (Finance) in Hindustan (NALCO) on 3rd January 2014. Prior Paper Corporation Limited, since to this assignment, he was working as September,2010. the Executive Director (Finance) of the Mr Banerjee was previously on company. deputation to Delhi Metro, in the A fellow member of Institute of Cost capacity of General Manager (Finance) Accountants of India, Shri Samal has He is a Fellow Member of the Institute significant exposure in the areas of of Cost Accountants of India. He has Treasury Functions, Foreign Exchange handled major projects like Gauge Management, Corporate Accounts, Conversion, Laying of New Lines,Track Budgeting & Control. Doubling, Construction of Railway Bridges, etc. He has also worked in He has played a key role in largethe capacity of Director in the Office scale computerization in Finance, of Comptroller & Auditor General Capital Restructuring, Foreign Debt of India for about 2 years from 2003 Management, introducing Risk onward as a representative of Ministry Management against Foreign Exchange of Railways in an Autonomous Body exposure. He was also associated with - “Government Accounting Standards various academic institutions as visiting Advisory Board” - under the aegis of faculty like XIMB, Utkal University, CAG, involved in the formulation KIIT, ICAI. of Accounting Standards for Central Government and State Governments. He is representing Nalco on the Board He has also worked in Steel Authority of Joint Venture Company-Angul, of India Limited as a Finance Executive Aluminium Park Ltd. and NPCILNALCO Power Company Ltd from 1986 to 1989. K C Samal takes charge as Director (Finance), National Aluminium Company Limited (NALCO) 2014. He is an HR professional with over 30 years of rich experience in Strategic Human Capital Engagement (SHCE) in social responsibility initiatives, talent attraction & development, industrial relations, formulation of personnel policies, improvement of HR systems, nurturing successors and developing committed team. Sri Borgohain had acquired globally accredited MBA degree (EQUIS, Europe, AACSB, USA) from International Centre for Promotion of Enterprise, Slovenia, sponsored for this programme by the Department of Public Enterprises, GOI. Sri Borgohain was also a Gold Medalist in his post graduation studies with specialisation in Personnel Management & Labour Welfare and obtained LL.B degree after completion of his graduation. Alok Sinha takes additional charge as CMD, Airport Authority of India M P Mall takes additional charge as CMD, Indian Satyabrata Borgohain takes Railways Catering & Tourism charge as Director (Personnel), Corporation Ltd (IRCTC) NEEPCO Ltd Sri Satyabrata Borgohain assumed Shri K.C.Samal has assumed the office the charge of Director (Personnel) in of Director (Finance) of National NEEPCO Ltd, Shillong on January 1, For comments/suggestions, please write to Nita Karmakar, Director, CII at nita.karmakar@cii.in Disclaimer: This document is being shared for information purposes only and is therefore not intended to substitute for formal professional advice. All information in this document has been compiled and/ or arrived at from various sources available in the public domain. Published by Confederation of Indian Industry (CII) The Mantosh Sondhi Centre; 23, Institutional Area, Lodi Road, New Delhi-110003 (INDIA) Tel: +91-11-24629994-7 Fax: +91-11-24626149 Email: info@cii.in Web: www.cii.in