Journalism of Courage
A paralysis on appointments has resulted in a situation where close to a dozen top state-owned firms in crucial sectors are headless today. The list includes the countrys three most powerful financial institutions Life Insurance Corporation,General Insurance Corporation and UTI Mutual Fund.
Key infrastructure sectors firms without fulltime chiefs include Coal India,the worlds largest coal firm that has come under heavy fire from all quarters for flagging output. Others include NMDC,Indias top miner of iron ore and other minerals,trading major MMTC,the countrys largest hydro firm NHPC Ltd.,and NHAI,the nodal agency in charge of overseeing national highway projects.
MMTC has been without a CMD since October 2010; NHPC since January 1,2011. CIL and Nalco have been headless since March 2011. Problems include delays by the Cabinet Committee on Appointments in approving the name of Public Enterprises Selection Board (PESB) candidates. There are instances of vigilance clearances not having been received,and of the parent ministry not favouring the PESBs choice.
Among the three financial behemoths,LIC has been without a fulltime chairman for over nine months. GIC,the sole player in the domestic reinsurance sector which provides reinsurance to direct general insurance companies,is also in the same boat. UTI Mutual Funds problem is almost a year old since the time its chairman and MD U K Sinha left to become Sebi chairman in February 2011.
