New Delhi: The government is likely to appoint a new Chairman and Managing Director of GAIL India after the superannuation of BC Tripathi, the current CMD, on January 31. Ashutosh Karnatak, Director (Projects), who is the senior most, is in the race to head the country's biggest natural gas firm.
Sources said Tripathi, who already enjoys a six-month extension of his second term and is the longest-serving head of a major PSU, has been denied a third extension as the CMD.
Karnatak may be appointed as interim CMD soon after the Tripathi's exit.
"The new appointment will be decided soon and the current CMD will work till his superannuation on January 31 next year," the sources said.
Meanwhile, the Department of Personnel and Training (DoPT) has communicated the Petroleum Ministry's decision to have a new appointment to the Appointments Committee of the Cabinet (ACC).
Though no official reason has been given for the denial of extension, it is believed that Tripathi was against splitting GAIL into two, by hiving-off gas pipeline or the marketing business into a separate unit for a possible sale to a strategic investor. Some months ago, the ACC had approved an extension of Karnatak's tenure by 16 months till his superannuation at the age of 60 in June 2020. Karnatak was appointed for a five-year term beginning March 1, 2014, and this term had ended on February 28.
Tripathi, 59, who was the youngest person to become the Chairman of an oil and gas PSU in August 2009, completes his second five-year term on July 31 and is eligible for an extension till his superannuation on January 31, 2020.
Tripathi was appointed CMD by the Congress-led UPA government in 2009 for an initial five-year term. His extension was due to be reviewed in 2014, but the UPA government in October 2013 approved another five-year term till July 31, 2019.
