The Centre has asked the states to set specific performance targets for the public sector units owned by them, on the lines of the Central Public Sector Enterprises.
The Department of Public Enterprises has sent the draft on the model memorandums of understanding that should be signed between the state governments and enterprises under their control.
"Wheresoever public money is involved, there should be responsibility, autonomy and a monitoring system," Department of Public Enterprises Secretary R Bandyopadhyay told PTI.
As is the case with the CPSEs, the state level public enterprises would also be given targets in conformity with the long-term mission and vision of the enterprises.
The minister of heavy industry and public enterprises, Sontosh Mohan Dev, has recently written to the chief ministers, forwarding the draft of the model MoUs.
The DPE had held consultations with the principal secretaries of the states in preparing the uniform target setting mechanism. The states can make changes in the MoUs with the SLPEs, depending on their peculiar requirements.
Against 242 CPSEs, there are about 1,000 SLPEs which the Centre feels can show improvement if the monitoring mechanism is strengthened and accountability enhanced. The DPE also favours autonomy for these SLPEs.
Some of the state governments have already introduced the MoU system for their SLPEs.
