Major Policy Initiative 2008

YEAR END REVIEW :
The Department of Public Enterprises is the nodal department for all Central Public Sector Enterprises (CPSEs) and formulates policy pertaining to the role of CPSEs in the economy. The DPE also acts as the interface between the various Parliamentary and Government organizations and the CPSEs. There are 244 Central Public Sector Enterprises (CPSEs), with a total investment of Rs.4,36,389 crore, 213 CPSEs under operation and 31 CPSEs at construction stage.Corporate Governance The Department of Public Enterprises, in association with Ministry of Corporate Affairs and Standing Conference of Public Enterprises (SCOPE), hosted an International Conference on Corporate Governance in State Owned Enterprises (SOEs) in Asia held on 25th and 26th June, 2008 under the auspices of Organization for Economic Co-operation and Development (OECD). The 4th Directors’ Conclave on Corporate Governance was organized on 21st November, 2008. This Conclave was organized by Standing Conference of Public Enterprises (SCOPE) in collaboration with Academy of Corporate Governance under the aegis of DPE.Navratna Scheme In 1997, the Government had initially identified nine Public Sector Enterprises (CPSEs) that had comparative advantages and potential to emerge as global giants as Navratnas. Three more CPSEs were granted Navratna status during the year 2007. The Navratna PSEs have been granted enhanced autonomy and delegation of powers to incur capital expenditure, formation of joint ventures/subsidiaries, effecting organizational restructuring, etc. During the year 2008, six more CPSEs, viz., National Aluminium Company Ltd., NMDC Ltd., Rural Electrification Corporation Ltd., Power Grid Corporation of India Ltd., Shipping Corporation of India Ltd., and Coal India Ltd. were granted Navratna status. Now, there are eighteen (18) CPSEs having Navratna.Post –Retirement Employment of Top Level Executives of CPSEsDuring the year, instructions were issued to the effect that Board level executives of CPSEs can undertake post-retirement employment after a period of one year as compared to 2 years earlier. The concerned administrative Ministry/Department has been empowered to take a final decision on the application(s) for granting permission to accept any appointment/post after retirement and communicate the same to the applicant within a time limit of 30 days.Incentives for Chief Executives/Functional Directors of Sick/Loss Making CPSEs The Government has issued guidelines relating to incentives to those Chief Executives/Functional Directors of sick/loss making CPSEs who have contributed exceedingly well in turn around of the such CPSEs. Such incentives will enable the Government to attract Board level executives capable of turning around loss making CPSEs and ensure successful implementation of the revival plan.Memorandum of Understanding 147 CPSEs have signed MoU for the year 2008-09. Evaluation of MoU score of 112 CPSEs was done for the year 2007-08 on the basis of Audited data by concerned Syndicate Groups of the Task Force. Working Group on review of the MoU guidelines for CPSEs was constituted under the Chairmanship of Shri Ashok Chandra, Chairman, Task Force. The Working Group has submitted its Report which is under consideration. Conference of Secretaries in charge of State Level Public Sector Enterprises (SLPEs) was held at Vigyan Bhavan, New Delhi on 10.12.2008. Preparation of an Annual Survey of SLPEs and introduction of the MoU system in State Level Public Sector Enterprises were deliberated in the Conference.Wage PolicyThe Second Pay Revision Committee (2nd PRC) The Second Pay Revision Committee (2nd PRC), headed by Mr. Justice M. Jagannadha Rao, retired Judge, Supreme Court of India submitted its report to the Government on 30.05.2008. The recommendations of 2nd Pay Revision Committee were considered by Government. The orders for pay revision of executives and non unionised Supervisors of CPSEs w.e.f. 01.01.2007 were issued on 26.11.2008. The implementation of pay revision has been linked to affordability of the CPSEs. The new guidelines also provide that the revision of scales of pay for non-unionised supervisory staff may be decided by the respective Board of Directors of the CPSEs. The CPSE concerned has to bear the additional financial implications on account of pay revision from their own resources and no budgetary support will be provided.The ceiling of Gratuity has been raised to Rs. 10 lakh w.e.f. 01.01.2007. An Anomalies Committee consisting of the Secretaries of Department of Public Enterprises, Department of Expenditure and Department of Personnel & Training has been constituted to look into further specific issues / problems that may happen in implementation of Government’s decision on the recommendations of 2nd PRC.Variable Pay/Performance Related Pay The Performance Related Pay (PRP) has been directly linked to the profits of the CPSEs/units and performance of the executives. The percentage ceiling of PRP progressively increasing from junior level to senior level executives, expressed as percentage of pay ranges from 40 to 200 per cent of basic pay.Wage Policy for 7th round of wage negotiation for the workmen of Central Public Sector Enterprises (CPSEs)The wage policy in the 7th Round which generally falls due from 1.1.2007 has already been approved by the Government. Guidelines in this regard were issued on 09.11.2006. DPE vide its OM dated 01.05.2008 has further allowed administrative Ministries/ Department concerned with the CPSEs to take a decision on a case by case basis for the periodicity of Wage Settlement below 10 years but not less than 5 years, with the approval of their Minister.Pay of employees under CDA pattern in CPSEsOn the basis of Governments decision on recommendations of 6th Central Pay Commission, the DPE has revised the pay scales of the employees of CPSEs following CDA pattern w.e.f. 01.01.2006. The benefit of pay revision would be applicable to the employees of those CPSEs that are not loss making and are in a position to absorb the additional expenditure on account of pay revision from their own resources without any budgetary support from the Government.
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What is 3G ?
* 3G is short for third-generation mobile telephony services.* The technology is based on an International Telecommunication Union standard called IMT-2000.* 3G phones work in higher bandwidths of 15-20 MHz, while currently available mobile phones are loosely regarded as 2G or 2.5G, and use 30-200 KHz bandwidth.* Since the bandwidth for 3G is higher, it facilitates faster, better and simultaneous delivery of audio and non-audio data. 3G networks offer download speeds of 14.4 Mbits/second and uploads of 5.8 Mbits/second.* Bandwidth is a measure of the width of a range of frequencies used while transferring data from one point to another, and is measured in hertz.* While audio data is normally associated with telephone call, non-audio data comprise e-mail exchanges, instant messaging, and downloading information, all riding on the Internet.* Now with 3G services telecom carriers will be able to provide video broadcast and other value-added services such as tele-medicine, mobile banking, stock transactions, e-learning etc, through wireless communications at a faster pace and with high quality.* Various government services (e-governance) to the masses would be facilitated through the medium of mobile phone powered by a higher bandwidth of 3G.* Acquiring 3G spectrum is expensive (Rs 1,600 crore for new licence holders according to the Telecom Regulatory Authority of India). So a telecom carrier would like to capitalise by ensuring widespread usage of mobile telephony.* 3G services were first launched by NTT DoCoMo of Japan in October 2001, followed by Korea in January 2002.* As of December 2007, 190 3G networks were operating in 40 countries.* There are about 225 million 3G subscribers worldwide today.
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Guidelines for 3G and broadband wireless access (BWA)services announced
A. Raja, Union Minister of Communications and Information Technology announced the detailed guidelines for 3G and BWA services laying down the road map for rolling out these services in the country on 1 August 2008.
With the introduction of these services, the quality of voice telephony will be improved as 3G spectrum would enable service providers to provide good quality services to a larger number of subscribers. Further, additional value added services will become widely available to the public. BWA services will ensure quick roll out and enhanced penetration of broadband especially in rural areas, where there is problem of last mile connectivity. It will facilitate availability of e-governance services like tele-medicine, e-medicine, e-ticketing, e-education etc, through broadband to the large section of rural population. Auctioning of 3G and Broadband spectrum will be done through e- auctioning by a specialized agency separately. New players would also be able to bid thus leading to technology innovation, more competition, faster roll out and ultimately greater choice for customers at competitive tariffs.
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UNIDO International Solar Energy Centre
Solar power is a promising energy source for developed and developing countries alike. The United Nations Industrial Development Organisation (UNIDO) in the time of decreasing bio-fuels is concentrating on promoting renewable energy sources like solar energy in poor countries to help them achieve sustainable development.
UNIDO has memberships from more than 100 countries. This international community of especially industrialized nations after discussions felt that with the rapid development of the economy and the increasing demand of energy, energy and environment are fundamental for development. Therefore, the development and application of the renewable energy such as solar energy is the only solution for the sustainable development in the 21st century.
After deliberations over the past few years they realized the need to create one centre dedicated to renewable energy and particularly solar energy. They finally selected China as the home of the project. UNIDO International Solar Energy Centre for Technology Promotion and transfer is an international organization, signed and approved by representatives of UNIDO and Chinese government at Vienna on December 1st of 2005, and established on the basis of Gansu Natural Energy Research Institute.
On March 26th , 2006, UNIDO International Solar Energy Centre for Technology Promotion and Transfer was established at Lanzhou, capital of northwest China’s Gansu province, China. On December 28th , 2007 the building of international solar energy centre started to be built beside the Yellow River. The 14,000 square meter project is near the upper reaches of the Yellow river that runs through the city. Construction is expected to be completed by the end of this year. This centre is the second of its kind for UNIDO in China, after the organisation’s centre for Small Hydro Power in Hanghou in east China. The Gansu Natural Energy Research Institute is a leader in solar energy studies in China. It has received more than 20 awards for solar products and solutions.
The Chinese government is contributing about 8.5 million US dollars to the project. After its completion, the Centre will work with other UNIDO institutes and focus on transferring cutting-edge solar technology and providing related products to developing countries. It will also help these countries draft sustainable energy development plans. So far, the centre has trained about 700 technicians and officials. They are from 96 countries in five continents.
Besides, it has carried out various bilateral and multilateral cooperation on solar energy, including technology assistance projects. The general training program and discussions on technology will be mutual at the Centre understating individual needs. If a country shows interest in cooperation, the centre will hold further talks in its continuation. Experts from centre already had interaction with Tanzania to help them map out a solar energy development plan, on solar cookers and solar water heaters.
The use of solar photovoltaic technology for power generation enjoys a very bright future. This technology used to be applied in outer space, and now it can be used on the ground. The solar energy technology can also be incorporated into developing green buildings that use less energy. Green buildings should be able to absorb and store solar energy in daytime in winter, which could be used for heating at night. In the summertime, the buildings should free themselves from heat. That will save a lot of energy.
The UNIDO Centre provides a platform for developing countries to communicate and assist each other. One of the centre’s priorities will be to try to weave solar technology into people’s everyday lives, all over the world. People will be able to use solar technology for generating power. The centre aims to integrate the application and popularization of solar energy technology with the development of global economic development and elimination of poverty, to enhance the technological research, products application and popularization of developing countries to establish experiment and demonstration basis in developing countries, to establish experiment and demonstration bases in developing countries, to help and provide human resources training etc.
The centre commits itself to accelerate and transfer mature, practical and advanced solar energy technologies and other renewable energies, to organize joint study and research on new technologies and new products on solar energy application, to provide counseling as far as international standardized procedure and products certification procedure are concerned, to promote international cooperation and technological communication on utilization of solar energy among developing countries, to accelerate South-South cooperation and south-North cooperation progress, to hold technological training workshops and seminars on solar energy technologies internationally and nationally, to contribute the ecological environment protection and energy construction of human being. The centre primarily will work on development popularization and utilization of applicable technology of solar energy.
Many countries are working in the field of solar energy to develop economical solar chips and solar panels but it is still not viable for consumers at large. These problems and challenges which currently exist in the solar product market will be addressed. The centre will also help in planning of national energy, energy policies and regulations, research and development activities to meet market demands, exchange experiences of solar energy technologies and investment and financing for the renewable energies.