New Delhi: In order to appoint a new chairman of the nation’s biggest state-owned oil retailer, Indian Oil Corporation (IOC), the Centre has constituted a three-member search-cum-selection committee, which will be headed by the government head-hunter Public Enterprises Selection Board (PESB) chairperson, including the oil secretary as a member. However, no timeframe has been set for the selection of the new IOC head, according to the government.
As per an official order issued on October 7, former Hindustan Petroleum Corporation Ltd (HPCL) chairman MK Surana is the third member on the committee. “The Appointments Committee of the Cabinet (ACC) has approved the proposal of the oil ministry for constituting a search-cum-selection committee to find a new chairman of IOC,” the order said.
IOC’s was the second instance in recent months where PESB did not find a suitable candidate for the top job at blue chip oil companies and retired personnel were given charge. The government in August gave a one-year post-retirement extension to IOC’s incumbent chairman Shrikant Madhav Vaidya - a rare event for anyone on the board of a state-owned company.
Vaidya, who took over as the chairman of IOC on July 1, 2020, was to retire after attaining the superannuation age of 60 years at August-end. “But he has been a re-employment on a contract basis for one year beyond the date of his superannuation, i.e with effect from September 1, 2023, till August 31, 2024, or till the appointment of a regular incumbent to the post, or until further orders, whichever is the earliest,” an official order dated August 4 had said.
This is one of the very rare occasions when a director on the board of a PSU has been given an extension of service beyond his retirement age. No chairman of a Maharatna PSU has been given an extension beyond 60 years in recent years. In fact, the government had earlier this year denied Ranjan Kumar Mohapatra an eight-month extension as director (human resources) of IOC till his superannuation age.
The oil ministry recommended an extension of service for Vaidya after PESB in May did not make any recommendation for the next chairperson of IOC after interviewing 10 candidates, including Chennai Petroleum Corporation Ltd (CPCL) managing director Arvind Kumar. After the interview, PESB in an order on May 16 stated, “The Board did not recommend any candidate and advised the Ministry of Petroleum and Natural Gas to take an appropriate course of further action including search-cum-selection committee or as deemed appropriate for the selection with the approval of the competent authority.
( With input from agencies)
