The government want perks of executives of Central Public Sector Enterprises (CPSEs) to be linked to their performance, but is also anxious to see that their earnings do not exceed those of bureaucrats.
The Pay Revision Committee, set up last week, has been asked to examine productivity-linked incentives and performance-related payments.
The government wants the committee, which will be headed by retired Supreme Court Judge M J Rao, to look at performance-linked payments and incentives as a tool to transform CPSEs into professional and successful commercial entities.
However, while talking about linking payments to performance, the government also wants to ensure that this does not lead to a situation where emoluments of officials of CPSEs far exceed those of bureaucrats.
* Governments tend to balance such constraints with its power to make laws that favour state-run organisations. (A recent example. A government agency in West Bengal acquired over 990 acres land for Tata's 1 lakh car project. But, it cannot transfer the land to Tata, because land ceiling laws in that state restrict private land ownership to 24 acres.)
* Some of us argue it's competition that matters, not ownership (pointing out to the much improved service by BSNL these days). But laws that favour state/state-owned businesses should make us think again.
* There is no reason why this should be so. Forget a government doing things that others see as immoral (killing dissenting people in authoritarian states, for example). We saw a few posts back that a government need not necessarily worry about doing things that even it sees as bad for the country. (Whether it's right in thinking so is a different issue)
No comments:
Post a Comment