Tuesday 21st May 2024

No extension to CMD’s of PSU

Sep 11th, 2015 6:23 pm | By | Category: TOP STORIES


Thenewsmanofindia: Government of India seems has given indications that in standard course there will be no extension for CMD’s of PSU after their term expires. Recently there have been several occurrences in PSU world that itself attest govt’s intention. Yardstick of CMD performance remain irrelevant in this case as many of performer too were denied extension taking that illustrate it as a policy of government from now onwards. Some of the recent cases are as follows:

V.P. Agrawal, the former CMD of Airport Authority of India in a surprised move was removed by the aviation ministry of India after the Central Vigilance Commission (CVC) declined to clear his name for an extension even after Agrawal’s five-year term ended he was allowed to continue in the post but finally there was extension given to him.

Case of K. R. Kamath also a similar one as he served as the CMD of Punjab National Bank from October 28, 2009 to October 27, 2014. Kamath too was denied further extension as CMD PNB.

In a quite surprising move Chandra Shekhar Verma who served as the CMD at Steel Authority of India Ltd. until June 10, 2015. He has over two decades of professional experience and He is an expert in funds mobilization well performed SAIL but Verma was denied for any extension in his office.

Arup Roy Choudhury who is a name within himself and PSU world, Choudhury served as CMD, NTPC for full five year term and earlier he was appointed chairman of the National Buildings Construction Corporation Limited (NBCC) at the age of 44, making him the youngest CEO ever of a public sector enterprise. He was the corporation’s chairman until 2010, and during his time in office, NBCC’s turnover and net-worth grew significantly. Although Arup Roy Choudhury is considered as man of PR but with the continuing flow of Govt’s look like policy Choudhury had compromise to satisfy himself with single term as CMD SAIL where 31st August was his last working day office of CMD SAIL.

B. Prasada Rao who has been the CMD of Bharat Heavy Electricals is going to retiring in December 2015 as Atul Sobti is going to succeed him as CMD, BHEL.

Similarly Satnam Singh who served as CMD of Power Finance Corporation Limited since August 1, 2008 until July 31, 2013. He had to step down in a surprising move.

K L Dhigra who served as the Chairman and Managing Director of ITI Limited from April 8, 2010 to June 03, 2015 and Prior to this, Dhingra served as the Chairman and Managing Director of Housing and Urban Development Corporation Ltd. Dhigra was removed from his office in a surprising move.

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