The Hindu Business Line : Fresh hunt to begin for ONGC CMD post

The hunt
ONGC received a shocker on late Tuesday evening when the ACC did not confirm any of the names proposed by the Public Enterprise Selection Board for the post of CMD.
The front-runner for the post was Mr R.S. Sharma, who has been officiating as the CMD since May 2006, when the Government had decided not to extend the term of Mr Subir Raha.

Advertisement

New Delhi Feb. 7 After returning the panel of names suggested for the post of Chairman and Managing Director of Oil and Natural Gas Corporation, the `competent authority' has suggested that the `zone of consideration for the selection of the CMD should include persons from outside the public sector undertakings' to have a wider choice. In other words, the competent authority, in this case the Appointments Committee of Cabinet (ACC), has stressed on a wider search and selection process and a level playing field to candidates from the PSU and from the private sector a well as the Government.

The country's public sector giant received a shocker on late Tuesday evening when the ACC did not confirm any of the names proposed by the Public Enterprise Selection Board for the post of CMD of ONGC. The front-runner for the post was Mr R.S. Sharma, who has been officiating as the CMD since May 2006, when the Government had decided not to extend the term of Mr Subir Raha. The news saw ONGC stocks dip to Rs 890 during the day after opening at Rs 914 on Wednesday and closed at Rs 891.65 at the BSE.

Mr Sharma's name is understood to have been selected by the PESB on August 30. After a wait of five months, despite getting all the necessary clearances, the competent authority has rejected the recommendations and suggested fresh interviews. Speaking to newspersons the Petroleum Minister, Mr Murli Deora, hoped that new CMD of ONGC would be appointed in the next three months (by end of May).

New panel

The Petroleum Minister also said that a new committee to select potential candidates would be constituted in a week's time. While rejecting the names, the competent authority had also said that the composition of the selection committee should undergo some change and include Secretary Petroleum as a member as well as have one or two outside experts.

The Petroleum Ministry had received a communication late evening on Tuesday from the Department of Personnel and Training, stating that the Appointments Committee of Cabinet has not confirmed appointment and fresh interviews will have to be done. The committee also did not approve of the candidature of Mr A.K. Hazarika, Director (Onshore) in ONGC, who was tipped as the second choice after Mr Sharma.

Brushing aside any comments that the move would bring down the morale of the two candidates, Mr M.S. Srinivasan, Secretary Petroleum, said, ``No adverse finds have been recorded against either Mr Sharma or Mr Hazarika. In fact, it has been specifically noted that they are not debarred from consideration and that Mr Sharma should continue to hold charge as CMD till this process is completed.''

According to industry experts such moves are not good for any company, which is looking for sustainability and credibility. They hoped that it was a temporary phase that all the speculations would be put to rest at the earliest.