Our Group includes experts who founded and contributed to the development of the successful MOU system for Central Public Sector Enterprises (CPSEs) in India.
The Memorandum of Understanding (MoU) is a negotiated document between the Government, acting as the owner of CPSEs and the Corporate Management of the CPSEs. It contains the intentions, obligations and mutual responsibilities of the Government and the CPSE and is directed towards strengthening CPSE management by results and objectives rather than management by controls and procedures.
Today in India, as many as 200 CPSEs (including subsidiaries and CPSEs under construction stages) have been brought into the fold of the MoU system. During this period, considerable modifications and improvements in the structure of and procedures for preparing and finalizing the MoUs have been affected. These changes have been brought about on the basis of experience in the working of the MoU system and supported by studies carried out from time to time by expert committees on specific aspects of the MoU system.
The MoU system has had a major impact on the performance of public enterprise. As a result, today profits and dividends of CPSEs constitute more than 7 percent of the total revenue raised through taxes in India
The group also has first-hand experience in developing and implementing state-of-the-art software for preparing and monitoring MoUs. The group has also been involved in training over 200 public sector employees in the software being used by the Department of Public Enterprise, Government of India.
We can help governments put in place a comprehensive system of performance management in public enterprise sector.