PSUs Running Headless?

A Parliamentary Committee report released in August has revealed that 53 public sector undertakings (PSUs) are currently functioning without regular heads, sources say. In the absence of appointed chairpersons or managing directors, responsibilities are being discharged by senior officers or directors holding additional charges, sources add. Major organizations such as BPCL and BSNL are among those being run by officers with dual responsibilities, sources say. As per established practice, the selection process for such senior posts begins at least a year before the incumbent’s retirement. However, delays are often attributed to political considerations, with extensions of one year or more frequently granted, sources note. For instance, the post of Chairman at BPCL has remained vacant since February 2026, sources say. Similarly, UCO Bank is operating without a regular MD and CEO, with Executive Director Sabu holding additional charge. 

Interestingly, Sabu has been granted an extension until November 2026, sources add. At BSNL, the Chairman’s post has also been lying vacant for a prolonged period, sources say. Other organizations, such as Cochin Port Authority, Paradeep Port Authority, and the Marine Product Development Authority, are reportedly being run by officers who are managing additional responsibilities, with the post of Chairman vacant, sources say. Experts point out that in the absence of regular leadership, functioning suffers and implementation of schemes is delayed, sources add. Of the 475 PSUs under the government, 291 are operational, while 75 are either in the process of being closed or are classified as non-operational, sources say. Nearly 18% of PSUs are without a regular CMD, sources add. The Finance Ministry’s permanent committee has also highlighted staffing shortages at DIPAM, where only 51 officers are working against a sanctioned strength of 89, roughly 60% capacity, sources say.