How to transform PSU to GOPM entity?

As we know that government owned entities (PSU) have failed to deliver results, everybody is asking how to transform these behemoth  entities. I believe it will be very hard and difficult to transform these entities and the process will take log time but it is doable.

Here are the steps which can be followed over time.
1. Nominate board of directors for every PSU.
2. New employee should be private employees, not government employees.
3. Existing employees should be given offer with 40% salary hike if they chose to become private employee.
4. Offer voluntary retirement schemes for older employees.
5. Board of director should choose new CEO.


I believe based on above steps, over time PSU will become GOPM entity. Please remember GOPM is good proposal to PSU whose performance can not be judged by profit. Any entity whose performance can be judged by profit should become private entity.

GOPM entity (Government Owned Privately Managed)

What is GOPM?
An entity which is owned by government but managed like private entity

Why do we need GOPM?
Private entities are useful when business operation can result into profit. Unfortunately performance of some organization can not be measured by profit. Objective of these organization has to be determined by government.

Based on historical experiences, it has been concluded that government owned entities have poor performance. Hence we need GOPM concept.

Structure of GOPM entity:
1. Board of directors, nominated by government (>5 members). Determine annual performance benchmarks.
2. CEO, professionally selected by board. annual renewal if performance benchmark met.
3. Private Employees. No government benefits.
4. Operation cost is paid by government.

Where GOPM can be applied:
Any entity which is not profit driven but essential for a state.
Example NASA, DRDO

Team India Policy Panel

Organization Name: Team India Policy Panel

Mission: Suggest policies to central/state governments.

Structure: One member nominated from each state/UT

               Center will nominate Deputy chairman. PM will be chairman

               Rest are SME (subject matter expert)

 Modules: National Security

                Economic development

                National Integration

                SAARC integration

                Natural Resource

Every module will have module lead and 4-5 module members (SME)

State appointees will be interface between state and policy panel.