What is the Committee on Public Undertakings (CPU)? UPSC Notes

It’s a parliamentary committee that keeps a watch on government companies — like a watchdog over how public money is used in PSUs such as BSNL, ONGC.

🏛️ What is the Committee on Public Undertakings?

It’s a parliamentary committee that keeps a watch on government companies — like a watchdog over how public money is used in PSUs (Public Sector Undertakings) such as BSNL, Air India, ONGC, etc.


📚 Basic Facts to Remember (Simplified)

Point Details (Easy Version)
Formed in 1964, after a report by Krishna Menon Committee
Total Members 22 members (15 from Lok Sabha, 7 from Rajya Sabha)
Elected by Parliament, using proportional representation
Term 1 year
Chairman From Lok Sabha only, chosen by the Speaker
Ministers? No, ministers can't be members

🛠️ Functions of the Committee (With Easy Examples)

Function In Simple Words Real-Life Example
1. Check reports & accounts of PSUs Looks at how much money was spent and earned by government companies Example: Did BSNL use its funds correctly last year?
2. Check CAG reports on PSUs Studies the audit reports prepared by the Comptroller & Auditor General Example: CAG reports that Air India lost ₹2000 crore — CPU checks if the report is accurate
3. Check if PSUs are working efficiently Makes sure PSUs follow good business practices like any private company Example: Is SAIL running efficiently or wasting government money?
4. Takes up extra work from PAC or EC if Speaker allows The Speaker can assign more PSU-related work to this committee Example: If PAC is busy, Speaker may ask CPU to study NTPC's energy efficiency

🚫 What the Committee CANNOT Do (Limitations)

Not Allowed To Examine Meaning Example
Govt policy decisions Cannot question decisions like privatization Example: It can't question why govt wants to sell BPCL
Daily operations Can't interfere in day-to-day work of PSUs Example: It won’t question daily flight operations of Air India
Statutory matters If a PSU is governed by a special law, CPU can’t look into that part Example: It won't interfere with LIC’s internal rules under LIC Act

⚠️ Limitations of the Committee

Limitation Meaning
🧾 Post-mortem only Looks at things after they’ve happened, not in advance
🔧 No technical knowledge MPs are not engineers or experts, so they can’t understand very technical issues
📋 Advisory only Its suggestions are not binding on the government
🔟 Covers only 10–12 PSUs a year Due to limited time, not all PSUs can be checked every year

🧠 Trick to Remember Functions: "RAPID"

RAPID helps remember CPU’s key duties:

  • RReports of PSUs

  • AAccounts of PSUs

  • PPerformance of PSUs (efficiency)

  • IInvestigation by CAG

  • DDuties from PAC/Estimates Committee

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