Thursday, June 11, 2015

SAIL chief Verma denied extension; Will NTPC and GAIL chiefs follow suit?

Outgoing SAIL CMD Verma 
NARENDRA Modi-led NDA government has refused to extend the tenure of SAIL Chairman C S Verma till his superannuation. Thus he has become the first 'Maharatna' PSU head to be denied extension during the current NDA regime.
Verma was appointed SAIL chairman and managing director (CMD) for a 5-year term in June 2010...
by the previous UPA government.
He was eligible for an extension till he attained the superannuation age of 60 years in September 2019.
Among other Maharatna PSUs, NTPC CMD Arup Roy Choudhury will complete his five-year term on August 31 and will be eligible for extension till he attains superannuation age of 60 years in December 2016. But he is unlikely to get an extension.
Another Maharatna PSU GAIL CMD B C Tripathi, however, got a second five-year term in July 2014 but as per PESB rules, his appointment has to be confirmed after 1 year.
Tripathi was the youngest person to head a Maharatna PSU when he was appointed GAIL head in August 2009 by the UPA government. But it remains to be seen whether he will be allowed to continue for his second five year term ending July 2019.
Tripathi will be eligible for a third term till January 2020 when he turns 60.
As per PESB rules, any appointment to a PSU board for more than three years has to be re-confirmed after one year from taking charge.
Verma's tenure ended on June 10. As the Steel Ministry did not move papers for his extension. Steel Secretary Rakesh Singh has been given the charge of SAIL chairman for three months.
The last time a 'Maharatna' PSU head was denied extension was in May 2006 when Subir Raha's term was not extended as CMD of Oil and Natural Gas Corp. 
Now, Public Enterprise Selection Board (PESB) will invite applications to select a new chairman who will take charge after the approval of Appointments Committee of the Cabinet, a process that may take up to 6 months. SAIL director (finance) Anil Kumar Choudhary is among the contenders for the post.

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