Total 53 CPSEs without CMD, 70% Independent director post vacant
A parliamentary panel on finance has flagged "a deep-rooted managerial crisis" in Central Public Sector Enterprises (CPSEs) as 53 CPSEs are working without a full time chairman and managing director.
The panel also raised concern over the dividend policy, recommending a review to allow CPSEs greater flexibility in retaining earnings as rigid payout expectations risk constraining investments in research and development (R&D) and capacity expansion risking their long-term growth and competitiveness.
In its report on the demand for grants, the parliamentary Standing Committee on Finance pointed to a “triple crisis” across CPSEs—leadership vacancies, funding constraints and gaps in state capability—warning that these structural weaknesses are undermining governance and strategic decision-making.
As of February 2026, 53 CPSEs—including key entities such as Bharat Petroleum Corporation Ltd (BPCL) and BSNL, MTNL, MMTC ltd, —are operating without full-time Chairman and Managing Directors (CMDs), relying on interim “additional charge” arrangements.
The panel, headed by BJP leader Bhartruhari Mahtab said this weakens accountability and delays critical decisions by CPSEs.
The panel urged the government to overhaul leadership appointments with focus on succession planning.
The shortage of independent directors is even more acute, with 533 positions vacant out of a sanctioned 758, implying a nearly 70% vacancy rate.
The committee termed this a serious governance deficit that dilutes board oversight and independence.
Further, the report called for stronger monitoring of subsidiary companies and a revamp of performance evaluation frameworks. It recommended that assessments clearly separate systemic constraints from workforce productivity to ensure more accurate and fair benchmarking.
Addressing these issues through coordinated reforms in leadership, capital allocation and oversight mechanisms will be key to positioning CPSEs as globally competitive and strategically relevant enterprises, the panel said.
The panel also raised concern over the dividend policy, recommending a review to allow CPSEs greater flexibility in retaining earnings as rigid payout expectations risk constraining investments in research and development (R&D) and capacity expansion risking their long-term growth and competitiveness.
In its report on the demand for grants, the parliamentary Standing Committee on Finance pointed to a “triple crisis” across CPSEs—leadership vacancies, funding constraints and gaps in state capability—warning that these structural weaknesses are undermining governance and strategic decision-making.
As of February 2026, 53 CPSEs—including key entities such as Bharat Petroleum Corporation Ltd (BPCL) and BSNL, MTNL, MMTC ltd, —are operating without full-time Chairman and Managing Directors (CMDs), relying on interim “additional charge” arrangements.
The panel, headed by BJP leader Bhartruhari Mahtab said this weakens accountability and delays critical decisions by CPSEs.
The panel urged the government to overhaul leadership appointments with focus on succession planning.
The shortage of independent directors is even more acute, with 533 positions vacant out of a sanctioned 758, implying a nearly 70% vacancy rate.
The committee termed this a serious governance deficit that dilutes board oversight and independence.
Further, the report called for stronger monitoring of subsidiary companies and a revamp of performance evaluation frameworks. It recommended that assessments clearly separate systemic constraints from workforce productivity to ensure more accurate and fair benchmarking.
Addressing these issues through coordinated reforms in leadership, capital allocation and oversight mechanisms will be key to positioning CPSEs as globally competitive and strategically relevant enterprises, the panel said.
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