The Group of Ministers (formerly called Cabinet sub-Committee) on Public Enterprises and Cooperatives has been endowed with the implementation responsibility for enterprise reform.  This Group of Ministers (GoM) will set broad policies and guidelines for restructuring / privatization / disinvestments method, as well as the execution and close of the transactions; while providing general oversight to the implementation process.  Decisions requiring approval of the Cabinet under the Business Rules of the Government will be referred to it by GoM.

The Implementation Secretariat

Implementation Secretariat in the Department of Public Enterprise which is an autonomous body. The Implementation Secretariat will plan and recommend the strategy for the Reform Program to the Group of Ministers and implement the same ones the strategy is approved

The Implementation Secretariat will prepares plan of Action for implementing the reform process based on decisions of the Group of Ministers and by making recommendations to the Group of Ministers where no decisions have been made so far.

The Implementation Secretariat will perform the following implementation tasks:

1. Coordination of preparation of the enterprises for restructuring /privitasation/disinvestments.
2. Selecting and managing the various teams of technical experts and external advisers.
3. Managing the marketing efforts including promotional activities.
4. Undertaking negotiations with various groups of stakeholders enterprises management, labour unions, sector departments).
5. Ensure that appropriate measures are taken during the process to protect their interests.
6. Executing transactions.

The Implementation Secretariat will seek the approval of the Group of Ministers on the following matters:

1. Appointment of an external adviser where the total fee may exceed Rs. 25,00/
2. Restructuring of enterprises before privatization / disinvestments with financial implications.
3. Approval of price and terms of sale. 

To perform the above functions, the Implementation Secretariat is authorized to:

1. Receive funds from the Government budget.
2. Receive funds from international multilateral and bilateral donors.
3. Enter in contracts.
4. Employ, remunerate and exercise disciplinary control over staff and consultants.
5. Enter into agreements with local or international institutions for advisory services and participation in relevant workshops / seminars.
6. Open and maintain bank accounts. g. Issue publications, circulars and press releases.

In addition to the above the Implementation Secretariat will also:

1. Take over the implementation of the on-going privatization / disinvestments / restructuring of Public Enterprises and Cooperatives.
2. Implementation Secretariat will develop a time bound action plan for the Voluntary Retirement Scheme (VRS) program and monitor progress in each enterprise and in the program as a whole, including:
   
   1. number of employees who have taken VRS, the VRS payments made (ex-gratia and legal dues), and the sources of funds that have been used (Government funds, enterprise resources if any, Bank funds);
   2. the number of employees who are still to take VRS, the payments to be made, and the financing sources to be used; and
   3. changes in aggregate employment in the enterprise during the reporting period. c. Prepare Phase II of the Program.

Responsibilities of Core staff of Implementation Secretariat

Chairman: The Chairman (Principal Secretary, Department of Public Enterprises) will be responsible for preparing and putting forward all reform proposals to the GoM for its approval. He/she will be responsible for their implementation once approved and for the conduct of negotiations through to final closure, subject to reference of these for approval to the GoM. He/she will be responsible for the day-to-day affairs of the Secretariat and will also be the authorized signatory for all contracts and agreements within the competence of the IS and on behalf of the Government. He/she must have knowledge of enterprise operations with leadership experience in the government.

The Chairman will be authorized to the approve the following:

1. Positions and remuneration of the core staff
2. Signing of all agreements and contracts
3. Recommendations and proposals made to the GoM
4. Day-to-day expenditures of the IS
5. Appointment of external advisors
6. Establishing the amounts of earnest money, guarantees etc., as and when required from the advisors and potential investors
7. Establishing the pre-qualification criteria for appointment of advisors and selection of investors
8. Information and Marketing Memorandums prepared by the Transaction Managers or advisors before circulation to potential investors
9. All “bidding” packages for privatization
10. All valuations and financial models prepared by the Transaction Managers or external advisors based on the recommendation of the Financial Consultant
11. Draft contracts and agreements prepared by the Legal Consultant
12. Payment to external advisors upon completion of work and other vendors
13. Press releases and promotional material prepared by the Media Expert.

The Chairman will be responsible for:

1. Seeking clearances and approvals from other relevant departments when required
2. Conducting promotional activities, ‘pre-bid conferences’ and the biding for hiring external advisors and potential advisors
3. Appointing ‘evaluation committees’ for short listing external advisors and potential investors
4. Advising strategies and approaches to reform for different sectors
5. Advising design of the general framework, policies and operational procedures
6. Managing the operations of the Secretariat
7. Coordinating all ongoing transactions and initiate the preparation work of the new ones
8. Supervising the work of the staff

Transaction Manager: A Transaction manager (TM ) will be involved at all stages in a transaction as a ‘front line’ member of the Secretariat. Transaction manager must have private sector experience with proven leadership and managerial skills. He must possess expertise in the concerned industry, and preferably background in finance or investment banking. To carry out the transaction, the TM will form his/her own team from outside consultants and internal experts, and act as the liaison person between all parties involved in the process (eg., management of the enterprise, individual consultants, consulting firm/investment banks and donor agencies). He/she will be responsible for a wide range of tasks relating to the design, coordination, supervision and implementation of each transaction. He/she will report to the Chairman.

Detailed responsibilities include:

1. Initiate the privatization of an enterprise and take it through to closure; following up on post closure issues as well
2. Obtain basic data on the enterprise history, GOAP shareholdings and other information relevant to the privatization of the enterprise
3. Develop a Project Plan, which will include the broad reform issues together will a project timetable which includes strategy options, and ensuring such up front planning is approved
4. Develop an information memorandum, instructions to bidders, bank guarantees and other documents
5. Prepare summaries and making presentations to the IS/GoM as required during the privatization process.
6. Assist IS in preparing terms of reference for subcontracts and specialized technical inputs from international and national experts and advise in the recruitment process.
7. Carry out the entire transaction, including the preliminary work (eg., financial and technical analysis of the company to be disinvested), marketing the transaction, inviting the expressions of interest, managing and closing the transaction
8. Act as the liaison person between the advisers, the IS, the management of the concerned enterprise, the relevant Department and regulatory agencies
9. Hands on involvement in the final stages of initial closure from the Pre-bid conference to the selection of the successful bidder including liaison with the Financial Consultant for matters such as collection of earnest money (and refunds), pre-transfer payments, bank guarantees and transfer of the enterprises
10. Coordinate, guide and supervise the work of all project personnel.

Legal Consultant: The main responsibilities of the Legal Consultant will include reviewing the legal issues related to restructuring / privatization, coordinating the work of the legal consultants, provide advice in establishing the appropriate post-privatization regulatory and institutional framework, and assisting in the preparation of the legal documents for the transaction. The Legal Consultant must be a well reputed and experienced corporate lawyer. He/she will be supervised by the Chairman and be part of the project team.

Detailed responsibilities include:

1. Review the legal system in Andhra Pradesh with regard to pre-conditions for privatization in terms of (1) property laws, (2) laws related to status, establishment and functioning of business organizations, (3) laws necessary to create legal environment in which privatization can be effectively implemented and (4) laws relating to liquidation of companies
2. Review the regulatory framework with particular attention to industry related regulations
3. Identify gaps; provide advisory services and guidance on model solutions
4. Lead formulation of legal text for typical privatization related transactions (model contract law, bidding documents, employee participation schemes)
5. Ensure protection of all stakeholders interests in the concerned industry after privatization
6. Coordinate with legal and judiciary system
7. Assist in monitoring post privatization compliance on contractual legal issues.

Accounting / Financial Consultant:  The Financial Consultant will undertake all administrative tasks relating to contracting out external advisors, consulting firms and investment banks, and carry out all payment related activities. He/she will also provide feedback to the TM on different reports and models provided by the consultants and advisors. He/she will be supervised by the Chairman and will be part of the project team.

Detailed responsibilities include:

1. Review and monitor accounts of the PEs and Cooperatives being reformed
2. Coordinate the payments of these parties and assist with all contractual issues, including the design, negotiation and monitoring of contracts
3. Ensure that investment banks and consultants adhere to budgets
4. Provide feedback to the transaction manager on different reports and models provided by the Consultants and advisors
5. Assist in monitoring post privatization compliance on contractual financial issues.

Media Expert: The Media Expert will promote the program to various stakeholders, especially the investor groups. He/she will be supervised by the Chairman and will be part of the project team.

Detailed responsibilities include:

1. Establish and maintain a positive image of the government’s reform program
2. Monitor outside opinion and respond accordingly
3. Advise the Chairman on media issues
4. Inform the public and other stakeholders about the policies and activities so that maximum understanding is achieved
5. Promote the program to various investor groups.

Labor Expert: The labor expert will ensure compliance with the GOAP policies on all labor issues, including redundancy and severance packages being offered as part of reform. He/she will be supervised by the Chairman and will be part of the project team.

Detailed responsibilities include:

1. Review and approve the redundancy figures of PE being reformed
2. Ensure that the severance package being offered is in compliance with approved policies
3. Work with the legal consultant to ensure that the contracts being entered with the investors ensure that the new management will deal fairly with the employees
4. Follow up on the implementation of severance packages.

Research Associate / Computer Specialist: This associate will act as the computer expert for the IS and provide technical support for both software and hardware. In addition to these duties, the associate will also will provide Research and Analytical support to the Core Staff of the IS as time permits.

Detailed Responsibilities include:

1. Provide assistance, training and guidance to all IS staff on computer software and hardware related issues including initial introduction to common user applications
2. Provide technical assistance and trouble shooting for hardware and application problems as they arise
3. Assist and provide guidance in the formatting and preparation of reports and presentation materials as and when required
4. Provide analytical and modeling support and assistance with spreadsheets and other analytical tasks related to the work of the IS
5. Provide assistance with statistical and other research focusing primarily on processing the data available and obtained. The associate will not be required to do any field research as he/she would need to be available in the office at all times for computer related assistance.