PM appoints panel to fast track BHEL chiefs extension

BHEL has been consolidating under Rao and his replacement executive director Prakash Chand does not have the requisite board experience.

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BHEL chairman BP Rao could become the first officer of a public sector undertaking (PSU) to get an extra term after superannuation as Prime Minister Manmohan Singh on Thursday appointed a secretaries committee to fast track the approval.

The PMs intent is evident from the fact that the committee is headed by his Principal Secretary Pulok Chatterji and includes Cabinet Secretary Ajit Seth,Public Enterprises Secretary OP Rawat and Heavy Industries Secretary Sutanu Behuria.

The urgency to give two more years to Rao,who retires on December 31,is also evident from information that the first meeting of the committee has been fixed for Saturday.

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The committee has been asked to examine the track record of Rao and recommend the need for continuing him as BHEL chairman, said an official from the Prime Ministers Office. A note from the heavy industries ministry reasons that BHEL was undergoing a lean phase and a strategic plan was underway for its diversification into railways,solar power equipment and other sectors.

It says that BHEL has been consolidating under Rao and his replacement executive director Prakash Chand does not have the requisite board experience. Governments headhunter Public Enterprise Selection Board (PESB) selected Chand after interviewing over 10 candidates in June.

Another pointer to the Prime Ministers inclination for continuing with Rao by giving him an extra tenure is that a similar proposal from petroleum minister M Veerappa Moily to give one more year to ONGC chairman S Vasudeva has been sent for the approval of the Appointments Committee of the Cabinet (ACC).

In a letter dated December 17,the Department of Personnel & Training wrote to the petroleum ministry that the proposal for Vasudevas extension be routed through the ACC after obtaining vigilance clearance from the Central Vigilance Commission.

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Responding to Moilys November 4 request,the DoPT wrote to petroleum secretary Vivek Rae that the ministry may submit an appropriate proposal in the prescribed proforma along with CVC comments for consideration of the ACC well before the expiry of the term of the present incumbent. Vasudeva retires next February and PESB has selected OVL MD DK Sarraf as his successor.