SAIL chairman denied extension

Verma had four years' service left; steel secy takes temporary charge

The government has denied an extension to Steel Authority of India Ltd (SAIL) Chairman & Managing Director C S Verma, whose five-year tenure ended on Wednesday.

Verma was appointed SAIL chairman & managing director in June 2010 by the United Progressive Alliance (UPA) government of the time. Since he still had four years before turning 60, the age for superannuation, he was eligible for an extension. A government order said the steel secretary would officiate as chairman of the company till a full-time chairman is appointed. This is the first instance of the Narendra Modi-led National Democratic Alliance (NDA) government denying extension to the chief of a major public-sector company. The government had recently given an extension to D K Saraf, chairman of Oil and Natural Gas Corporation (ONGC).

Government head-hunter, Public Enterprise Selection Board (PESB), will now invite applications to select a new chairman, who will take charge after an approval from the Appointments Committee of the Union Cabinet, a process that might take up to six months.

Sources said Anil Kumar Choudhary, director (finance), SAIL, was among the contenders for the post.

Among chiefs of other large government-run companies, Arup Roy Choudhury, chairman & managing director of power producer NTPC, will complete his five-year term on August 31 and will be eligible for an extension till December 2016, when he turns 60.

B C Tripathi, chairman of gas utility GAIL India Ltd, had received a second five-year term in July last year. But according to PESB rules, his appointment has to be confirmed after a year. Tripathi will be eligible for a third term until January 2020, when he will reach 60 years of age.

According to PESB rules, any appointment to the board of a state-run company for more than three years has to be re-confirmed after a year of taking charge.