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Analysis of Yojana Magazine : ”Capacity Building of PSU’s”


In order to meet the training needs in the current dynamic scenario, it is imperative that there is synergising of resources and a more active exchange of technical knowledge and other related ideas among PSUs.

What needs to be done?

o There is a  need to bring about collaboration between training facilities of various PSUs and create a pool of shared resources.
o A successful collaboration between these training facilities owned by distinct PSUs will not only create cross-synergisation between them but also develop a vibrant pool of common resources to be shared with others.
o Training and Capacity Building in Public Sector Undertakings is an area that gaining importance, particularly due to rapid advancements in technology and other operational methodologies.
o To meet the training needs it is imperative that there is a need for synergising of resources and a more active exchange of technical knowledge and other related ideas among PSUs.
o There is a need to bring about collaboration between training facilities of various PSUs and create a pool of shared resources. This would also be in line with the ‘National Programme for Civil Services Capacity Building’ (NPCSCB) being implemented by the Department of Personnel and Training.

How many PSU’s are there in the country?

o There are 256 operational Central Public Sector Undertakings (CPSUs) in the country, employing around 10 1akh people.
o Out of these CPSUs, 96 have been conferred the Ratna status among which 10 are Maharatna companies, 14 are Navaratnas, and 72 are Miniratnas.
o The net profit of these organisations was 93,294 crore rupees in 2019-2020.
o They also make a substantial contribution to the growth of the Indian Economy and critical infrastructure.

Importance of Training for employees of PSU’s

o Since PSU’s are also expected to perform on a competitive basis with prudent management, quality decision-making while ensuring accountability, efficiency, and transparency, the need for world-class training inputs cannot be overemphasised.
o Modern processes and capacity building in the form of functional competencies, skills, and attitudes will foster a culture of efficiency, competitiveness, integrity, and Probity, which will also curb administrative malpractices.
o Many of these Public Sector Undertakings, especially the larger ones with ‘Ratna’ status have their own state-of-the-art training facilities which are used mainly for Training and Capacity Building of the employees working in these companies.
o Some PSUs even have more than one such training institute, each with a distinct field of specialisation.
o While most of these training institutes have some select core competencies in their operational field, some also individually cater to the development of managerial expertise like Leadership, Team building, Communication, Executive Development, Decision making, and other similar soft skills for their employees.
o As of now, there is no institutionalised system of collaboration between these training institutes and each one caters mainly to its own employees using in-house resources and some select outside resource persons.
o A successful collaboration between these training facilities owned by distinct PSUs will not only create cross-synergisation between them but also develop a vibrant pool of common resources to be shared with others.
o This collaboration would be most beneficial if it is done in a manner such that the distinct institutes complement each other’s training capabilities in terms of their core competencies and also the general (managerial) areas of training.
o This collaboration may not be restricted to the training institutes of PSUs of the same sector.
o For the best optimisation of resources, this scheme could be extended to training institutes across various sectors.
o Common training areas could be identified and executives of one PSU could benefit from training/other inputs from another PSU’s training institute.

What is NPCSCB?

o Recently, the Cabinet has approved the National Programme for Civil Services Capacity Building (NPCSCB) by setting up an Integrated Government Online Training (iGOT) portal.
o It essentially aims at the development of an integrated training infrastructure across services.
o One of its core guiding principles is to “create an ecosystem of shared training infrastructure including that of learning materials, institutions and personnel.”
o The premier training institutes for Civil Services such as the Lal Bahadur Shastri National Academy of Administration, SVP National Police Academy, Indira Gandhi National Forest Academy, National Academy of Direct Taxes, Rafi Ahmed Kidwai National Postal Academy, National Academy of Indian Railways, etc., have been co-opted to synergise their resources for this mission.
o It is therefore in the interest of training of personnel of PSU s that a similar integrated approach is adopted to create a common pool of resources among their training institutes.

Latest Training Structure/Centres of Excellence

o The premier training institutes of most of the bigger PSUs are equipped with the latest training infrastructure as well as human resources to cater to the needs of their personnel.
o Each of them has certain flagship programmes that they run for the senior management.
o In addition, each has its own ‘core competency’ or specialised area of training. Invariably, the Core Competency areas relate to the PSUs area of functioning.
o For example, Oil and Natural Gas Corporation Limited (ONGe) has a training institute that specialises in areas such as Drilling Technology, Geo- Data Processing, Reservoir Studies, Oil Field Equipment, etc. Coal India Limited has an institute in Ranchi which mainly deals with the training and development of executives.

Lack of Institutional Mechanism in Resource Sharing and Possible Solution

o It is seen that though some of these institutes are also designing customised courses for executives of other PSUs and even for foreign nationals, yet there is no institutionalised mechanism as of now for collaboration and resource sharing.
o This resource sharing needs to be institutionalised and two or more training institutes when collaborated could be designated as ‘Centres of Excellence’ (CoEs).
o To create the shared infrastructure of these combined resources, the core competencies of all the training facilities of the PSUs could be mapped first and then can be modalities developed for strengthening it.
o Different institutes could be identified to further enhance a ‘specific’ competency.
o This could be done in a manner, so as to avoid duplication of process and create specialisation in a particular field by the identified institute.
o This would be followed by resource sharing between institutes which could be in terms of Resource sharing needs to be experts/faculty, infrastructure, R&D, etc.
o Common programmes could be designed for personnel of different PSUs which would also result in an exchange of ideas and sharing of best practices.
o The areas where different sectors can best benefit from each other could be identified and each other’s facilities be utilized at times some PSU’s manufacture/supply key equipment for other PSU’s, for example, BHEL under the Ministry of Heavy Industries manufacture turbines for Power stations and also several other heavy equipments for the functioning of many PSUs.
o Orientation visits/training of employees of the user PSUs could be arranged at BHEL’s training facility to familiarise them with the manufacturing process, size, scope, and other details of the equipment that they use, to better equip them to carry out their work.

Unique Problem of Smaller PSUs and Possible Solution

o In the case of smaller PSUs, there may not be any training facility at all.
o An arrangement could be to provide training for the personnel of such smaller PSUs in the facility most suitable to them.
1. Geographical Clusters
o To begin with, geographical clusters could be identified where, in a single location, several training institutes from separate fields are located.
o These could be made CoEs wherein institutionalised mechanisms are developed for sharing resource people, experts, R&D, and even the physical infrastructure. Gradually, a pool of master trainers could also be built by these ‘Centres of Excellence’ who could further impart training at various locations.
o In these Centres, apart from utilising each other’s core competency areas, the general areas of training like modules on Management, Preventive Vigilance, and Leadership could be designed and conducted collaboratively.
o This will not only prevent duplication of the process but also create uniform modules across institutes and standardise the raining process.
2. Thematic Clusters
o There may be different institutes offering similar core competencies. Tie-ups between such centres could help create Thematic Centres of Excellence.
o For this, institutes offering similar core competencies in the same specialised field could be brought together to share R&D and Training techniques.
o The thematic clusters can also be helpful in the Banking Sector. Most of the Public Sector banks too have premier training institutes located in different stations.
o These institutes other than having executives management modules also impart domain-specific training like interest management, micro-finance, rural banking, credit management, etc.
o On similar lines for the training institutes of PSUs, the training institutes of banks could come together and provide training to officers and staff across banks.

Importance of Ethics and Moral Values in Training

  • Another area that needs to be given paramount importance specially in training, is the awareness and the understanding that how work and values of organisations such as adherence to Rule of Law, transparency, and efficiency contribute towards the larger objectives of an inclusive, just, and equitable society.
  • Role of Public Sector Enterprises (PSEs) as agents of socio-economic growth and change, creators of formal and informal economic opportunities, providing social benefits through CSR (Corporate Social Responsibility) activities can help in mitigation of poverty, fulfilling the health and education needs of the underprivileged sections of society.
  • Training inputs can help in developing a sense of responsivity towards nation-building.

Way Forward

  • The CoEs as proposed could collaboratively tie up with specialised institutes which provide insights on these issues.
  • Periodical training could be organised by these Centres to any of these selected institutes, to enable the participants to understand the economic and social milieu of the country, and the ultimate goals governance strives at.
  • Goals of growth and development for all, fair and efficacious governance can only be realised if all stakeholders are enthused and trained in ideals imbued with ethics and empathy.
  • In addition, the PSUs could use their CSR activities’ locations and organise field visits to provide a holistic view of the nation-building processes to the trainees.
  • There is a requirement to create and develop an integrated training infrastructure across PSUs of the same sector and also different ones.
  • One of the core guiding principles of the recently launched iGOT portal by the government is to “create an ecosystem of shared training infrastructure including that of learning materials, institutions, and personnel.” On the same lines, the PSUs and Banks need to collaborate on capacity building, share resources, identify and strengthen core competencies.
  • This will optimise resource utilisation and have threefold benefits of avoiding duplication of process, standardise training, and creating specialisation

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