Tightening of Annual Performance Norms for CPSEs

The Government of India has introduced stricter annual performance norms for Central Public Sector Enterprises (CPSEs) to enhance accountability and support small businesses.

Key Performance Norms

• Strict penalties for non-compliance with Corporate Social Responsibility (CSR) obligations.
• Full deduction of marks for deviations in mandatory CSR activities or MSME procurement rules.
• Mandatory reporting of the number and amount of pending and paid bills in annual reports, with penalties for non-disclosure.
• Assessment of Research and Development (R&D) and innovation initiatives, particularly for CPSEs dependent on imports.
• Targets for reducing import dependency set by administrative ministries.

Purpose and Oversight

• Aimed at fostering accountability and timely support to small businesses in line with the vision of Atmanirbhar Bharat.
• Guidelines set by a high-powered committee chaired by the cabinet secretary, including officials from Niti Aayog and finance ministry secretaries.
• Emphasis on supporting small enterprises and promoting strong corporate governance.

Implementation Timeline

• The new performance assessment parameters are set for Fiscal Year 2027 (FY27).