CH4-ICA-Importance of MOU for SAIL

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What was the main purpose of the Memorandum of Understanding (MOU) between SAIL and the Ministry of Steel?

To provide financial assistance to SAIL

To oversee SAIL's international operations

To establish SAIL as a private sector company

To measure SAIL's performance against predetermined targets (correct)

When did SAIL enter into its first Memorandum of Understanding (MOU)?

In 2000

In 1995

In 1990

In 1987-88 (correct)

Who finalizes the Memorandum of Understanding (MoU) in respect to SAIL?

Ministry of Finance

Department of Public Enterprises [DPE] (correct)

Department of Steel

SAIL's Board of Directors

What is the significance of the parameters included in the MoU process?

They reflect the shareholders' interests in terms of growth and performance Signup and view all the answers

What does the MOU enable SAIL to do within the framework set by the Government?

Operate as an efficient public sector commercial enterprise Signup and view all the answers

Who may evaluate the targets set for SAIL's subsidiary according to the text?

SAIL on the same principles as DPE for SAIL Signup and view all the answers

What does the Memorandum of Understanding (MoU) aim to improve within SAIL according to the text?

Critical Performance Indicators Signup and view all the answers

What factors are considered for indexing the parameters of CPSEs?

Past performance and future projections Signup and view all the answers

What is the purpose of the digital dashboard developed by DPE?

To evaluate CPSEs against benchmarked targets Signup and view all the answers

What would result in the deduction of full marks for CPSEs?

Non-compliance with certain government priorities/programmes Signup and view all the answers

How are the scores calculated for CPSEs against benchmarked targets?

Automatically based on audited balance sheet data Signup and view all the answers

What happens to MoU agreements in case of changes in MoU exchange rate or raw material prices?

No adjustment is made to MoU agreements Signup and view all the answers

What role does the vision of the Administrative Ministry play in benchmarking?

It is considered for benchmarking purposes Signup and view all the answers

What types of activities could lead to compliance issues for CPSEs?

Non-implementation of CSR and procurement from MSEs Signup and view all the answers

What is the minimum percentage of targets that must be achieved to receive proportional marks?

50% Signup and view all the answers

What happens to the score if there are non-compliances with certain government priorities/programmes?

Full marks are deducted Signup and view all the answers

How is the final aggregate score calculated?

Marks towards non-compliance are deducted from the aggregated score Signup and view all the answers

What is the minimum MoU score required to receive a '>=33' rating?

33 Signup and view all the answers

How are the scores on all parameters calculated to arrive at the aggregate score?

All parameter scores are added Signup and view all the answers

Which of the following statements is true regarding the allocation of marks for each parameter?

All parameters receive proportional marks Signup and view all the answers

What is the consequence of non-compliance with certain government priorities/programmes by SAIL?