IIFCL post: FinMin to ask PMO to reconsider Bagla’s name

For Deepak Bagla,this could be the second time around when the government drops his name for the top post at state-owned India Infrastructure Finance Company Ltd.

Written by ENS Economic Bureau | New Delhi | Published:August 15, 2013 1:28 am

For Deepak Bagla,this could be the second time around when the government drops his name for the top post at state-owned India Infrastructure Finance Company Ltd.

Bagla was also seen to be amongst the front runners for the job in 2010 when then incumbent SS Kohli retired from IIFCL. But at the time,Bagla,partner (infrastructure) at London-based fund 3i,lost out to SK Goel. However,this time around,the department of financial services in the finance ministry is set to ask the Prime Minister’s Office to re-consider his name for the post. “A letter is being sent to reconsider the decision,” said a person privy to the development.

The move comes after the Appointments Committee of Cabinet turned down the proposal for Bagla’s appointment as the chairman and managing director,IIFCL,on concerns over conflict of interest.

Bagla is understood to have been the top choice amongst three shortlisted candidates for the post. These included former deputy managing director at State Bank of India SB Nayar and former chairman of IDBI Bank RM Malla. Nayar,who was second on the list. has now been appointed as head of IFCI.

“If the ACC does not agree,the other option with the finance ministry would be to appoint Malla as IIFCL chairman or else go in for fresh selections,” said the person.

The finance ministry had begun the process for selecting a chief for the state run company in January this year. IIFCL was set up as a wholly-owned company of the Government of India in 2006 to finance long term infrastructure projects. Its balance sheet size as on March 31,2013 stood at Rs 35,207 crore. In 2013-14,it has targetted fresh disbursements of Rs 15,800 crore.

Bagla,who joined 3i in 2007, previously also worked for the Citigroup and also has some experience working with the government. He is a special invitee to the High Level Committee on Financing Infrastructure and was earlier also a member of the Banking & Finance Committee of the Bureau of Indian Standards and as well as a part of a government panel to recommend corporate governance norms for independent directors.

But it is believed that reports that 3i plans to exit its India business did not help Bagla’s case.

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