Committee on Public Undertakings, Functions, Composition, Working

The Committee on Public Undertakings is a financial Parliamentary Committee created to ensure continuous scrutiny of India’s public sector enterprises. Established on 1 May 1964, it functions under provisions of the Rules of Procedure of the Lok Sabha and evaluates how Public Sector Undertakings (PSUs) are managed. The committee analyses their accounts, examines audit findings of the Comptroller and Auditor General, and checks whether PSUs operate using sound commercial principles. With a one-year tenure and members drawn from both Houses, it strengthens accountability and efficiency across government-owned enterprises.

Committee on Public Undertakings Objectives

The Committee on Public Undertakings aims to ensure transparent, accountable, and efficient functioning of public undertakings. The key objectives of the Committee has been given below:

• Examine the reports and accounts of listed public undertakings.
• Review CAG findings related to PSU performance.
• Assess whether PSU management aligns with prudent commercial practices.
• Ensure autonomy, efficiency, and responsible financial conduct.
• Bring PSU operations under systematic parliamentary oversight.

Committee on Public Undertakings Features

The Committee on Public Undertakings has a structured membership system, defined tenure and clear constitutional grounding within parliamentary financial committees.

• Formation: Constituted as one of the three financial standing committees of Parliament. Formed under Rules 312A and 312B of the Rules of Procedure.
• Annual Tenure: The Committee’s term is limited to one year, requiring fresh election of members each cycle.
• Election: Annual election using proportional representation with a single transferable vote.
• Restricted Membership: It comprises not more than 22 members, ensuring manageable and focused deliberations.
• Bicameral Representation: 15 members come from Lok Sabha and up to 7 from Rajya Sabha through proportional representation.
• Speaker’s Authority: The Chairperson is appointed by the Speaker.
• Membership Exclusion: Ministers cannot serve on the Committee.

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Committee on Public Undertakings Functions

The functions of the Committee on Public Undertakings revolve around examining PSU reports, audit findings and managerial efficiency to promote financial discipline in public enterprises.

• Reviews reports and accounts of PSUs listed under the Fourth Schedule.
• Analyses CAG reports directly related to PSU functioning.
• Evaluates PSU efficiency, autonomy and adherence to commercial prudence.
• Conducts broad studies on systemic issues affecting PSU operations.
• Exercises functions of the Public Accounts Committee and Estimates Committee where specifically assigned by the Speaker.

Committee on Public Undertakings Working

The Committee on Public Undertakings follows a structured examination process involving evidence collection, study groups and field visits to understand PSU operations.

• Selects PSUs or subjects for examination based on set terms of reference.
• Seeks detailed information and documents from relevant ministries and undertakings.
• Forms study groups for intensive subject-wise examination.
• Undertakes field visits and on-site assessments of projects and facilities.
• Holds informal discussions during tours without recording evidence.
• Conducts formal evidence sessions in Delhi with officials and experts.
• Maintains strict confidentiality of all discussion proceedings.
• Prepares reports with findings and recommendations and presents them to both Houses.
• Reviews government responses through Action Taken Reports for follow-up scrutiny.

Committee on Public Undertakings Composition

The committee has a fixed strength of 22 members chosen through proportional representation using the single transferable vote system.

• 15 members elected from Lok Sabha.
• Maximum 7 members elected from Rajya Sabha.
• Annual election ensures rotation and broad political representation.
• Chairperson selected by the Speaker, present chairman is- Shri Baijayant ‘Jay’ Panda.
• Ministers barred from membership; appointment as Minister leads to automatic disqualification.
• Party representation proportionally reflects strength in each House.
• Recent composition includes members from BJP, INC, DMK, TDP, SP, AITC, JDU, SS, AAP, BJD, etc.
• Uses these reports to highlight inefficiencies and drive managerial reforms in PSUs.

Committee on Public Undertakings List

The Committee on Public Undertakings covers statutory corporations, government companies and major PSUs listed in the Fourth Schedule for parliamentary scrutiny.

• Includes corporations established by central legislation such as Damodar Valley Corporation and Life Insurance Corporation of India.
• Covers national-level authorities like Airports Authority of India and National Highways Authority of India.
• Examines Food Corporation of India and Central Warehousing Corporation.
• Evaluates major defence PSUs such as Hindustan Aeronautics Ltd and Bharat Electronics Ltd.
• Covers shipbuilding undertakings including Mazagon Dock Shipbuilders and Garden Reach Shipbuilders.
• All government companies whose annual reports are tabled under Section 619A of the Companies Act are included.

Committee on Public Undertakings Reports

The Committee on Public Undertakings generates detailed reports evaluating PSU performance and follows up through Action Taken Reports to ensure accountability.

• Has produced 604 reports since its establishment.
• 301 are original reports examining PSU performance and systemic issues.
• 303 are Action Taken Reports reviewing government compliance with recommendations.
• 37 original reports are broad horizontal studies on PSU functioning.
• Notable examinations include BSNL’s high staff cost (nearly half its revenue in 2011-12).
• Probed ONGC Videsh Ltd’s losses exceeding Rs. 1182 crore due to overestimated reserves.