The Hindu Business Line : Uncertainty prevails over ONGC chief's tenure

The corridors of the Petroleum Ministry today had all the ingredients of a Bollywood suspense thriller, where a decision pertaining to the fate of Mr Subir Raha, the high profile Chairman and Managing Director of ONGC, was to be decided. Uncertainty continued to prevail till the evening on whether Mr Raha would get an extension as his five-year term got over on Wednesday.

While the market was buzzing with news that Mr Raha would go with the Government denying him an extension, the Petroleum Ministry maintained that the last word was yet to be heard from the authorities. Sources said that a final decision was yet to be taken and it could well be taken by late Wednesday night or Thursday, and Mr Raha might get an interim extension of three months.

Extension

The reason cited for the Ministry denying him a full extension till August 2008, when Mr Raha would reach 60 years of age was based on the negative remarks on his performance by the earlier Petroleum Minister, Mr Mani Shankar Aiyar, and the Former Petroleum Secretary, Mr S.C. Tripathi, and the T.N.R Rao Committee Report on the fire at a Bombay High oil platform last year.

Mr Raha was appointed for five years or till 60 years of age, whichever was earlier. Market sources also said that the Petroleum Secretary, Mr M.S. Srinivasan, had favoured a three-month immediate extension. Names of Mr R.S. Sharma, Director (Finance) ONGC, and Mr Anil Razdan, Additional Secretary Petroleum, were doing the rounds as those who could be asked to officiate as acting CMD by the Ministry till a permanent appointment was made through the Public Enterprise Selection Board.

ONGC is India's largest company in terms of market capitalisation with Rs 176,480.72 crore as on Tuesday.

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