Govt puts restrictions on PSU execs joining pvt cos

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Top level public sector executives, including directors and chief executives, will not be able to join private firms after retirement or resignation unless they get go-ahead from the government.

If they decide to join, they may have to pay damages to the government for violation as per the bond or agreement signed with the department concerned, says a circular issued by the Ministry of Heavy Industries and Public Enterprises.

“No functional director of the company, including chief executive who has retired/ resigned from the service of the company..shall accept any appointment or post.. in any company, whether Indian or foreign, with which the company has or had business relations within one year from the date of retirement without prior approval of the government,” the circular said.

The decision has been taken following some senior officials of Finance, Petroleum and other ministries joining private sector, which were later allegedly involved in lobbying for new employers.