The Hindu Business Line : No extension for Subir Raha

The five-year stint of Mr Subir Raha as the Chairman and Managing Director of the State-owned upstream giant, Oil and Natural Gas Corporation (ONGC), has come to an end with the Government deciding against giving him any extension.

The Government said on Thursday that "consequent upon the expiry of the five-year term of Mr Raha as CMD ONGC on May 24, the competent authority has decided to give additional charge of the post of CMD ONGC, as an interim arrangement, to the senior-most full-time functional Director of ONGC, Mr R.S. Sharma, Director (Finance)."

This has put to rest all speculations in the last 24 hours on whether Mr Raha, who has had clashes with the Government over production targets and issues of corporate governance including appointment of more Government nominees on the company board, would be given an extension or not. The Government also said that it has decided to initiate the selection process for a new CMD through the Public Enterprises Selection Board (PESB).

When contacted, the Petroleum Minister, Mr Murli Deora, said, "We may consider using his vast experience in the sector." Petroleum Ministry officials maintained that Mr Raha's service has been allowed to expire in a natural way. Mr Raha's term as CMD of ONGC was for five years or till the age of 60, whichever is earlier, and his contract for the five-year term expired on Wednesday.

When contacted, Mr Raha, who made a short visit to the ONGC office to hand over charge, declined to make any comment. According to sources, the denial of an extension for Mr Raha till August 2008, when he would reach 60 years of age, was based on the negative remarks on his performance by the former Petroleum Minister, Mr Mani Shankar Aiyar, and the former Petroleum Secretary, Mr S.C. Tripathi. The findings of the T.N.R. Rao Committee Report on the fire at a Bombay High oil platform last year is also said to have played a role.

The sources also said that the Petroleum Secretary, Mr M.S. Srinivasan, had favoured a three-month immediate extension.

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