The evaluation will start once the audited accounts of all the CPSEs are available, said the official, who did not wish to be identified.
The administrative departments sign memorandums of understanding (MoU) with the CPSEs under their purview, setting key performance targets for them annually. Some of the CPSEs are, however, exempt from MoU signing.
The proposed evaluation is aimed at ascertaining the scope for improvement in performance and any course correction that may be required, said the official.
In 2024-25, the combined capital spending by large CPSEs and four government entities had exceeded the revised target of ₹7.87 lakh crore to touch ₹8.07 lakh crore, according to official data.
Meanwhile, the government is on the verge of finalising the targets for various CPSEs for the current fiscal, after which MoUs will be signed with them. It had set the June-end deadline to complete this exercise.The parameters included in the MoU process for 2025-26 are market-oriented, reflecting shareholders’ interest in terms of revenue growth, return on net worth, asset turnover ratio and market capitalisation for listed CPSEs.While many of the parameters are similar to those in recent years, some of them reflect new priorities.
