In a comprehensive update regarding corporate governance across Central Public Sector Enterprises (CPSEs), the Ministry of Finance clarified the status of vacant leadership roles, independent director appointments, and administrative timelines.
Responding to Unstarred Question No. 2528 in the Lok Sabha on August 3, 2026, Minister of State for Finance Shri Pankaj Chaudhary outlined the Public Enterprises Selection Board (PESB) selection data and institutional mechanisms ensuring operational continuity.
Key Highlights: Functional Directors & CMD Vacancies
Addressing queries regarding vacant board-level roles across various CPSEs, the ministry shared specific selection metrics provided by the PESB:
- Full-Time Functional Director Vacancies: There are 22 vacant posts of full-time functional directors (comprising 7 CMD/MD positions and 15 functional director posts) with vacancy dates prior to July 30, 2026.
- Long-Term Vacancy Duration: Of these 22 functional board posts, only 3 posts have been vacant for more than six months.
- PESB Recommendations Processing: For the remaining vacant board-level positions, the PESB has already furnished its selection recommendations to the respective administrative Ministries/Departments for final competent authority approvals.
Independent Directors Status & Search Committee Pipeline
Regarding non-official (Independent) Directors required under the Companies Act, 2013, and SEBI (LODR) Regulations:
- Current Active Positions: Currently, 75 positions of non-official (Independent) Directors are filled across CPSEs against a cumulative requirement of approximately 750 positions.
- Recommended Candidates: The dedicated Search Committee has made recommendations to fill over 100 additional Independent Director positions on CPSE boards.
- Compliance Responsibilities: Administrative Ministries and individual CPSE boards are tasked with ensuring board committee quorums (Audit, CSR, and statutory committees) remain compliant with statutory guidelines.
Timelines, Vacancy Tracking Dashboard & Governance Safeguards
To prevent prolonged leadership gaps from impacting investment decisions and project execution, the government relies on strict administrative measures:
- Advance Job Description (JD) Initiation: Administrative Ministries must communicate the post’s JD to the PESB three months prior to the one-year mark before the date of vacancy occurrence. If delayed, the PESB independently initiates the JD one year in advance to kickstart selection.
- PESB Vacancy Tracking Dashboard: The PESB utilizes a digital tracking system monitoring key milestones including vacancy creation, JD initiation, advertising, application screening, and selection meeting dates.
- Additional Charge Guidelines: The government enforces structured guidelines for assigning additional charges for vacant board-level posts to safeguard day-to-day administration and financial decision-making.
Overview: Board-Level Appointments in CPSEs
| Category / Parameter | Official Status / Provision |
| Vacant Full-Time Functional Director Posts | 22 Posts (7 CMD/MD & 15 Functional Directors) |
| Vacancies Older Than 6 Months | 3 Posts |
| Filled Independent Director Positions | 75 Positions (against ~750 required) |
| Search Committee Recommendations | 100+ Positions recommended |
| Advance Selection Timeline Trigger | 1 Year in advance of vacancy date |
Click here to download Lok Sabha QA PDF
