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Review of profitability Case of Central Public Sector Enterprises (CPSEs)

August 27, 2020

Review of profitability Case of Central Public Sector Enterprises (CPSEs)

Pay revision of Board level and below Board level Executives and Non-Unionised Supervisors of Central Public sector Enterprises(CPSEs) w.e-f. 01.01.2017- Review of the Profitability

DPE Order for Review of Profitability for the Executives and Non-Unionised Supervisors of CPSE – Pay Revision w.e.f. 01.01.2017

No. W-02/0039/2017-DPE (WC)-GL- XV/20
Government of India
Ministry of Heavy Industries & Public Enterprises
Department of Public Enterprises

Public Enterprises Bhawan,
Block No.14, CGO Complex,
Lodhi Road, New Delhi-110003.

Dated, the 21st August, 2020

OFFICE MEMORANDUM

Subject:- Pay revision of Board level and below Board level Executives and Non-Unionised Supervisors of Central Public sector Enterprises(CPSEs) w.e-f. 01.01.2017- Review of the Profitability– regarding.

Also Read: Performance Related Pay in CPSE – DPE Order issued on 01-07-2020

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The undersigned is directed to refer DPE’s OM No W-02/0028/2017-DPE(WC)- GL-XIII/17 dated 03.08.2017 on the subject cited above. Para 3(iv) of the said OM, inter-alia, stipulates that “Subsequent to implementation of pay revision, the profitability of a CPSE would be reviewed after every 3 years and (b) if the profitability of a CPSE falls in such a way that the earlier pay revision now entails impact of more than 20% of average PBT of last 3 years, then PRP/ allowances will have to be reduced to bring down impact.”

2. Further, as per para 18 of the said DPE OM dated 03.08.2017 “Presidential directives would be issued by the administrative Ministry concerned based on the result of review which is to be done after every 3 years”

3. Accordingly, all administrative Ministries/ Department are requested to take necessary action to review the profitability of CPSEs under their administrative control in the light of provisions Stipulated in the above mentioned DPE’s OM dated 03.08.2017.

(Naresh Kumar)
Under Secretary

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