MMTC is being used as a test case for determining the efficacy of what has been called preventive vigilance, whereby a series of actions are initiated to stem the downward movement in the functioning of a PSU. Through this mechanism, ever since the appointment of Sanjay Bhoosreddy (IAS:1989:UP) as chief vigilance officer of the MMTC in August 2016, the government has been able to clean up the functioning of the company.
While the removal of Director (Finance) M G Gupta and Director (Marketing) Anand Trivedi in November and December last year shook the confidence and morale of MMTC officials across ranks and made its share price plummet to a historic low, a rebound in the company's functioning, as reflected in the upswing of its share value, has been visible from the beginning of this year, thanks to the introduction of preventive vigilance.
Having touched the low of Rs 42.50 on 03 Aug 2016, MMTC stock improved gradually and touched Rs 71 on 12 Jan 2017 and further stabilized at around Rs 64.30.
To restore the market confidence and revive its fortunes, MMTC initiated a number of measures under the principle of preventive vigilance. Among them are constructive employee engagement, effective business processes, systematic improvisation of ERP, reduction in transaction costs and focus on a total systematic improvement. With regular knowledge sharing initiatives started from November last year MMTC appeared to have been gaining its lost esteem and morale.
Among the exemplary moves undertaken recently is the shutting down of the company's marketing office in South Africa which has been running in huge losses for the past 6-7 years since Kamal Nath's tenure as Commerce Minister. It was set up to explore the market for precious minerals & metals but failed miserably to earn even a penny. It had been incurring a loss of approx one and a half crore rupees every year.
MMTC: How preventive vigilance cleaned up Augean stable
By IndianMandarins - 2017-02-20 11:52:31
MMTC is being used as a test case for determining the efficacy of what has been called preventive vigilance, whereby a series of actions are initiated to stem the downward movement in the functioning of a PSU. Through this mechanism, ever since the appointment of Sanjay Bhoosreddy (IAS:1989:UP) as chief vigilance officer of the MMTC in August 2016, the government has been able to clean up the functioning of the company.
While the removal of Director (Finance) M G Gupta and Director (Marketing) Anand Trivedi in November and December last year shook the confidence and morale of MMTC officials across ranks and made its share price plummet to a historic low, a rebound in the company's functioning, as reflected in the upswing of its share value, has been visible from the beginning of this year, thanks to the introduction of preventive vigilance.
Having touched the low of Rs 42.50 on 03 Aug 2016, MMTC stock improved gradually and touched Rs 71 on 12 Jan 2017 and further stabilized at around Rs 64.30.
To restore the market confidence and revive its fortunes, MMTC initiated a number of measures under the principle of preventive vigilance. Among them are constructive employee engagement, effective business processes, systematic improvisation of ERP, reduction in transaction costs and focus on a total systematic improvement. With regular knowledge sharing initiatives started from November last year MMTC appeared to have been gaining its lost esteem and morale.
Among the exemplary moves undertaken recently is the shutting down of the company's marketing office in South Africa which has been running in huge losses for the past 6-7 years since Kamal Nath's tenure as Commerce Minister. It was set up to explore the market for precious minerals & metals but failed miserably to earn even a penny. It had been incurring a loss of approx one and a half crore rupees every year.
