Bangalore: As part of firepower boost PSUs may soon get the freedom to retrench up to 10 percent of their workforce. The nodal agency for India's 246 central state-run companies has backed a plan to allow sacking of non-performing staff, a move that is likely to run into opposition from 15 lakh-odd public sector employees. The Department of Public Enterprises (DPE) has favored the suggestion by the committee on performance management system, set up by the government. The limit is consistent with the recommendations of the second pay revision committee for public sector undertakings, which had suggested that each entity should identify 10 Percent of its executives under poor and non-performing categories. Such employees were to be denied performance related pay (PRP) for the relevant period. If implemented strictly, it could mean a reduction in work force to the tune of about 1.5 lakh. Central PSUs employ over 15 lakh people. "Most PSUs are in agreement that poor performers should be given only a single chance to improve," a Senior Official with the Department of Public Enterprises said, adding that those who fail to improve may be asked to leave the organisation. Under the current structure, performance-related pay is based on the profitability of the PSU, but a company cannot dole out more than 5percent of the pre-tax profit. The committee had asked each PSU to develop its own robust and transparent assessment system, but directed they adopt the 'Bell curve approach' in grading officers, indicating that not more than 10 percent to 15 percent of the executives be graded as outstanding or excellent.