The Department of Public Enterprises
(DPE),Ministry of Finance presents annually to
the Parliament an overview of the financial and physical performance of Central
PSEs.The data is collected directly from the CPSEs,which is validated from Annual Reports/ Accounts
furnished by the PSEs. included in the Fourth Schedule
to the rules of Procedure and Conduct of Business in Lok
Sabha.
The Memorandum of Understading
(MoU) as applicable to public sector enterprises is a
negotiated document between the government and the management of the enterprise
specifying clearly the objectives of the agreement and the obligations of both
the parties. The main purpose of the MoU system is to
ensure a level playing field to the public sector enterprises vis-à-vis the
private corporate sector .
MoU system in India was first introduced
in 1986 as result of the recommendations of the Arjun
Sengupta Committee Report (1984). The Committee laid
emphasis on medium term contract between the Government and the Central Public
Sector Enterprises (CPSEs) and recommended a five-year agreement that may be
reviewed annually. Since the CPSEs have been set up as part of the
national/central plan, the Committee favored MoU
especially in CPSEs operating in the core sectors of steel, power, petroleum,
fertilizer and petro-chemicals.