The Public Enterprises Selection Board [P.E.S.B] is a high powered body constituted
by Government of India Resolution dated 3.3.1987 which was subsequently amended
from time-to-time, the latest being on 11.11.2008. The P.E.S.B has been set
up with the objective of evolving a sound managerial policy for the Central Public
Sector Enterprises and, in particular, to advise Government on appointments to their
top management posts.
Functions of P.E.S.B
Specific functions assigned to the P.E.S.B include the following :
Constitution of the Board
- To be responsible for the selection and placement of personnel in the posts of Chairman,
Managing Director or Chairman-cum-Managing Director (Level-I), and Functional Director
(Level-II) in PSEs as well as in posts at any other level as may be specified by
- To advise the Government on matters relating to appointments, confirmation or extension
of tenure and termination of services of the personnel of the above mentioned levels;
- To advise the Government on the desired structure at the Board level, and, for senior
management personnel, for each PSE or group of PSEs;
- to advise the Government on a suitable performance appraisal system for both the
PSEs and the managerial personnel in such enterprises;
- To build a data bank containing data relating to the performance of PSEs and its
- To advise the Government on formulation and enforcement of a code of conduct and
ethics for managerial personnel in PSEs;
- To advise the Government on evolving suitable training and development programs
for management personnel in PSEs.
The P.E.S.B shall consist of a part-time or full-time Chairperson and three
full-time Members. The Chairperson and Members shall be persons who have had a long
and distinguished career in management of public or private corporations or public
administration and have a proven record of achievements, preferably, in the field
of personnel, finance, production or marketing. The three full-time Members of P.E.S.B
- A distinguished serving or former Chief Executive of a Public Sector or Private
Sector or Joint Sector Enterprise.
- A distinguished person with experience in selection of Top Management personnel.
- A distinguished serving or former Civil servant with experience in management of
PSEs or in areas of finance, industry or economic affairs.
Click to view present Board Structure and
Tenure & Age Limit
The Chairperson/Members of P.E.S.B shall hold office for a term of three
years from the date on which he assumes charge or until he attains the age of 65
years whichever is earlier. He shall be eligible for consideration of reappointment
for a second term subject to the age-limit of 65 years.
Pay & Allowances
Terms and conditions of appointment:-
Govt's Selection Policy for Board Level Appointments in PSUs
- The appointment of the Chairperson and the Members shall be made by the Government.
- The pay of the Chairperson and the Members shall be the same and equal to that of
Secretary to Government of India in the revised pay scale.
- Dearness Allowance and other relief on account of increase in the cost of living
shall also be admissible at the rates determined from time to time by the Government.
- The other conditions of service including allowances and benefits shall be as determined
by the Government from time to time.
The P.E.S.B shall not be a mere Interview Board and it shall, also, constitute
itself into a Search Committee to look out for and identify suitable persons who
can be appointed to Level-I and Level-II posts in PSEs.
The policy of Government is to appoint through a fair and objective selection procedure
outstanding professional managers to Level-I and Level-II posts and posts at any
other level, as may be decided by the Government from time to time. Government have
also recognised the need to develop a cadre of professional managers within the
public sector. Hence unless markedly better candidates are available from outside,
internal candidates, employed in the PSE, will be preferred for appointment to Board
level posts. However, if internal candidates are not available, preference will
be given to candidates working in other PSEs, either in the same area of business
or in other areas. Mobility of managerial personnel among PSEs within the same sector
or group, failing which mobility within the public sector as a whole will be encouraged,
subject to certain limitations. However, in special cases, recruitment may be made
from the organised services under the Central Government. Such cases would be where,
because of special circumstances, it is necessary to place a member of an organised
service in a PSE or where, because of the nature of the enterprise or its poor health,
it would be difficult to attract good professional managers on a tenure basis.
Under special circumstances, the appointment to a particular post or posts in a
PSE may be made other than through P.E.S.B with the prior and specific approval
of the Govt.
For sick and potentially sick PSEs, the Administrative Ministry/Department concerned,
in consultation with P.E.S.B could take a decision at any stage in the process
of recruitment to the post of Chairman, Managing Director or Chairman-cum-Managing
Director of the PSE, to take a person on deputation from any of the All India or
Group "A" Central Services without insisting on the rule of immediate absorption.