No.24(1)/2002(GL-037)GM
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES
DEPARTMENT OF PUBLIC ENTERPRISES
PUBLIC ENTERPRISES BHAVAN,
BLOCK NO.14, CGO COMPLEX, LODHI ROAD.


New Delhi,the 21st March, 2002.

OFFICE MEMORANDUM

Subject:-   Optimisation of direct recruitment to posts in PSUs.

        The Department of Personnel & Training in their O.M. No.2/8/2001-PIC dated the 16th May, 2001 issued detailed instructions on optimisation of direct recruitment to civilian posts in Ministries/Departments/Organisations, autonomous bodies – wholly or partly financed by Government, statutory corporations/bodies, etc. A copy of the same is enclosed.

2.     The question as to whether these instructions should be extended to Central Public Sector Undertakings (CPSUs) was considered in this Department. Needless to mention that efficiency and cost effectiveness are far more important for public enterprises. Among other things, over staffing has been the bane of public enterprises. However, public enterprises have shown an awareness to this handicap and have used VRS to good effect. While DPE does not consider it desirable for DOPT instructions to be implemented literally in CPSUs, there is need for Ministries/Departments to impress upon all the CPSUs under their charge the importance of rightsizing. In this background, it is important for each CPSU to prepare a manpower plan and suitably restrict fresh recruitment.

3.     All the administrative Ministries/Departments are requested to bring this decision to the notice of PSUs under their administrative control for information and necessary action.

Sd/-
(C.C.Unnikrishnan)
Deputy Secretary to the Govt. of India

All the administrative Ministries/Departments
(Secretaries by name)