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Public Enterprises 

Selection Board

Department of Personnel & Training
Ministry of Personnel, Public Grievances & Pension,
Govt. of India, New Delhi

Policy and Procedures


Selection procedure– initiation of


The PESB keeps a close and constant watch on the vacancies that are likely to arise and initiates the process of selection 12 months before the occurrence of the vacancies. 
The Board initiates selection process by sending job description of the post to the concerned Administrative Ministry/Department with a request to update the company profile and the job description within 10 days. In case, the Ministries/Departments do not respond within the aforesaid time frame the job description of the post is circulated suo moto. A period of 30 days is normally given to receive the applications after circulation of the vacancy.



Date of vacancy


The date of vacancy of a post is reckoned with reference to the date on which it will fall vacant or has fallen vacant.

In respect of newly created Post/posts or posts kept in abeyance, the date of the order creating the post/posts or reviving them will be the date of vacancy.   

In respect of a panel of PESB not approved by the competent authority, the date of order not approving the panel will be treated as the date of vacancy for fresh selection.



Circulation of the post


 The post is circulated among all Central PSEs, Ministry of Defence, Establishment Officer (EO) Department of Personnel & Training, concerned Administrative Ministry/Department, and State Chief Secretaries.  All the valid applications in the terms of the job description are required to be forwarded to PESB by respective organizations. Further no valid application should be withheld by the PSU or the Sponsoring Department.



Shortlist of candidates


After all the applications are received, including names taken from the data bank,  wherever necessary, these are scrutinized in the light of the job description of the post and eligibility criteria, and thereafter a shortlist of persons to be called for selection meeting  is finalized with the approval of the PESB. 



Scheduling of selection date

Scheduling of selection meeting is done in consultation with the Secretary of the Administrative Ministry/Department concerned.


Assistance by  Ministry representative and CMD/MD of the PSE


Secretary is invited to assist the PESB on behalf of the administrative Ministry/Department.  However the concerned Secretary may nominate an officer not below the rank of Additional Secretary to represent him for a Board level post in Schedules B, C and D. In the case of selection of Functional Directors, the concerned regular Chief Executive of the concerned enterprise is always invited to assist the PESB.


However, in the case of subsidiaries, the Chairman of the holding Company is invited to assist the Board.



Joint venture PSE


In the case of Joint Venture enterprises like Tehri Hydro Development Corporation and Satluj Jal Vidhut Nigam, which are joint ventures with the State Governments, the Chief Secretaries of Uttar Pradesh and Himachal Pradesh respectively are also invited to assist the Board. Similar procedure is followed in case of  Mumbai Rail Vikas Nigam (MRVC) where the Chief Secretary of Maharashtra is invited. 



Recirculation/ constitution of search committee/ Press Advertisement


After the first round of Selection Interview, in case no body is found suitable and the Board wishes to see some more candidates, the post may be re-circulated.


The Board may also decide to convert itself into a Search Committee and follow the Search Committee mechanism for making selection.


The Board may also decide to advertise the post in prominent dailies in which case the eligibility pay scales for the post are in the next below schedule.  Selection interviews are held on the basis of the open advertisement.



Rule of immediate absorption


Officers from Organized Services will be considered only on "immediate absorption basis", unless the posts have been exempted specifically from the rule of immediate absorption with the approval of the Competent Authority.



Exemption from the rule of immediate absorption


Provided if no suitable candidate is found and the Administrative Ministry so desires, the question of granting exemption from the rule of immediate absorption may be recommended by the Board.



Vigilance clearance


The Board while sending its recommendations to the concerned administrative Ministry/Department also conveys the recommendation to the Central Vigilance Commission to enable them to initiate advance action for processing vigilance clearance.



Internal candidate


Internal candidate is one, who is an employee of an enterprise who has put in a minimum of two years of continuous service in it, on the date of occurrence of vacancy, and who does not hold a lien in any other PSE/Government.  An employee who holds a lien on a post in a CPSE can also be considered as ‘an internal candidate’ of that enterprise, provided he/she has put in a minimum of two years of continuous service in that enterprise, on the date of acquiring the lien and the period for which he/she is away from the enterprise is not more than 5 years.



Age criteria


On the date of occurrence of Vacancy: 

Minimum Age:     For Schedule A & B posts    -     45 years

                            For Schedule C & D posts    -      40 years   

Maximum Age:

(i) Where the age of superannuation is 60 years,

           Not more than 58 years for internal  candidates and  not more than 57 years for others.           

(ii)Where the age of superannuation is 58 years,

             Not more than 56 years for internal candidates and not more than 55 years for others.

 There is no provision for relaxation in either minimum or maximum age in respect of post for which selection is made by PESB. 



Eligibility pay scales for various Board level posts


Pay scale of the

Board level post

Eligibility for

PSE executives

Government officers

Schedule A

Rs. 9000-10000

(Pre revised)


Rs. 13000-15000




(w.e.f. 01.01.1997)


Pre-revised scale of Rs.8250-9250(IDA)



 Post 01.01.1992



Post 01.01.1997




Addl. Secretary or equivalent/ Lt. General in the Army or equivalent.

Schedule B

Rs. 8500-9500

(Pre revised)


Rs. 12000-14000

(w.e.f. 01.01.1992)



(w.e.f. 01.01.1997)


Pre-revised scale of Rs.7250-8250/-(IDA) or

Rs.9500-11500/- Post 01.01.1992 (IDA)


Rs. 20500-26500 Post 01.01.1997 (IDA)




Joint Secretary or equivalent/  Major General in the Army or equivalent

Schedule C

Rs. 7500-8500

(Pre revised)


Rs. 10000-12000

(w.e.f. 01.01.1992)


Rs. 22500-27300/- (w.e.f. 01.01.1997)


Pre-revised scale of Rs.6250-7475/-(IDA) or


Post 01.01.1992 (IDA)


Rs. 18500-23900

Post 01.01.1997(IDA) or



Director or equivalent/  Brigadier in the Army or equivalent

Schedule D

Rs. 6500-7500

(Pre revised)


Rs. 9000-10500/- (w.e.f. 01.01.1992)


Rs.20500-25000/- (w.e.f. 01.01.1997)


Pre-revised scale of Rs..5550-6870/-(IDA)



Post 01.01.1992 (IDA)


Rs. 17500-22300

Post 01.01.1997(IDA)





Deputy Secretary or equivalent/  Colonel in the Army or equivalent

Period of service in the eligible scale


For internal PSE candidate, the period of service in the eligible scale is one year and two years for others.


Job hopping



Board level functionaries in one PSE will not be considered for posts in other PSEs unless they have completed two years in their posts on the date of vacancy in the other PSE.


Candidate recommended earlier not considered for another post for six months


Candidate recommended at No. 1 in the panel for a Board level post is not considered for another Board level post for a period of six months or till the approval of the concerned panel which ever is earlier.


Provided the candidate recommended at No. 1 for a Board level post is eligible to be considered for another Board level post in the PSE in which he is presently working.


Tenure of appointment at board level



The Board level functionary will be considered for appointment for a period of 5 years or till the age of superannuation, whichever is earlier on contract basis with a provision that the Government will have the option to terminate the services with three months notice.

Relaxations in appointment of Chief Executive and functional Directors in sick/ loss making PSE where revival package has been approved



In the case of sick/loss making CPSE for which revival plan has been approved by the Government, the following relaxation could be provided:-


(i) In case, any Board level incumbent of such CPSE has contributed exceedingly well in the turn around of that sick CPSE, his tenure may be extended till he attains the age of 65 years. Since, the selection process to a board level post is being initiated by Public Enterprises Selection Board (PESB) one year prior to the due date of superannuation of the incumbent, the proposal for extension of tenure beyond the age of superannuation will have to be initiated at least one year prior to the date of superannuation of the incumbent. In case, the balance period of tenure of incumbent is less than one year at the time of approval of revival package by the Government, such proposal for extension of tenure may be initiated immediately after approval of revival package by the Government.  The decision on the extension of tenure beyond the normal retirement age will be taken as per the extant procedure for extension of tenure of Board level executives, i.e. joint appraisal by PESB followed by the approval of the competent authority. Further, such extension would be subject to annual review of the performance of the incumbent to be conducted by Secretary of the concerned administrative Ministry.


(ii)   Where fresh appointment of the Chief Executive or any Functional Director is proposed and if the PESB procedure of circulation of vacancy does not ultimately lead to a panel for consideration by the competent authority, then relaxation of cut-off age for applying, to 62 years, with minimum tenure of 3 years, could be considered. In such cases, serving/retired CPSE executives, Government servants and private sector executives could be considered.


(iii)Chief Executives and Functional Directors of these CPSEs would be considered for a lump-sum incentive up to maximum of Rs.10 lakh out of the profits of the CPSE besides usual pay, allowances and perks attached to the post.  The detailed guidelines in this regard would be issued separately.


Confirmation of tenure

After completing the first year of appointment as Board level functionary, proposal for confirmation of the incumbent to enable him to continue for the balance period of his tenure or otherwise is required to be furnished by the administrative Ministry.  The PESB has circulated the prescribed formats for special performance reports (SPR) on 19.02.1999.  The assessment in the SPR is required to be given by the Secretary of the administrative Ministry in respect of the Chief Executive and by the Chief Executive duly countersigned by the Secretary of the administrative Department in respect of the Functional Directors.  The minimum acceptable score in the SPR by the PESB is 40 out of 50 with no single attribute having a score less than 3.  In case the SPR does not have an acceptable score then photocopies of up-to-date ACRs are required to be furnished to PESB alongwith a certificate in terms of DPE guidelines dated 25.04.1985 for holding a joint appraisal meeting to consider confirmation or otherwise of the  functionary.

Since grant of second term is a fresh contract confirmation is again required to be considered after the expiry of the first of the second term provided the duration of the second term is more than three years.

Extension/ Non-extension of tenure


Although Board level functionaries are appointed for a period of 5 years or till the age of superannuation, whichever is earlier initially, the term of appointment will require to be processed for extension or otherwise beyond the five year tenure in case the Board level incumbent is yet to reach the age of superannuation. For this, the Administrative Ministries/Departments should carry out in consultation with the PESB, an appraisal of the past performance of the Chief Executives/Directors.  Such cases would fall broadly in to the following categories:-


(i)                 Cases in which on the basis of the positive approval, the Administrative Ministry on the basis of the recommendation of PESB seek extension of the term for approval of the competent authority.


(ii)               Cases in which a change in the incumbency of the Chief Executives/Directors is considered necessary on account of :


(a)                         dismal performance of the Chief Executive/Director as well as of the Company  necessitating a change in the leader-ship.  In such case, the administrative Ministry after consulting PESB will approach the competent authority for a decision.


(b)                        Cases in which due to certain reasons the administrative Ministry and/or PESB desire to have a change.  In all such cases, the Administrative Ministry would obtain the orders of the competent authority invariably before terminating the appointment. 


The Administrative Ministry will furnish the following documents to PESB six months ahead of the date of expiry of the period of extension to consider proposal for extension/non-extension of tenure:-


(i)     performance appraisal report in the prescribed format (B) (C) & (D).  In the column relating to performance in the Enterprise since the date of appointment of the incumbent figures upto the last five years should be indicated. 


(ii)   special performance report in a narrative form duly signed by the Secretary of the Administrative Ministry in respect of the Chief Executive and in respect of the Functional Directors it should be recorded by the Chief Executive and countersigned by the Secretary of the Administrative Ministry.

    (iii) photocopies of the annual confidential report for the last 5 years alongwith a certificate in terms of DPE guidelines dated 25.04.1985.

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