GAIL boss' extension plea turned down

The government has denied extension of service to GAIL India Ltd Chairman and MD Proshanto Banerjee and has appointed Director (Projects) SP Rao as the acting CMD.

Rao is the seniormost full-time director of GAIL and has been in charge of operations and maintenance and project execution of the company since October 1999. He has been with GAIL since its inception and has 36 years' experience in the oil and gas industry.

Banerjee, whose term of five years ended on August 26, was denied an extension of service till his superannuation a year from now, an official source said.

Sources in GAIL alleged that Banerjee was denied an extension because of "his style of functioning and victimisation of officials, including a director of the company board".

"The performance of Proshanto Banerjee leaves a lot to be desired. His relationship with other organisations is rather a handicap in the growth of GAIL. His style of functioning has antagonised a large section of officers and employees," the petroleum ministry said in a chargesheet.

On GAIL's performance during the last five years, the ministry said the profitability of the company was primarily due to its monopoly status in gas transmission and availability of administered petroleum gas for its petrochemicals and LPG plant.

Official sources further said an SC/ST commission report, which indicted Banerjee for victimisation and harassment of Rao, was the biggest blow. During his tenure as CMD, Banerjee neither forwarded Rao's application for the post of managing director of Petronet LNG Ltd nor gave any reason for doing so.

The chargesheet lists as many as eight instances, including the Dahej-Vijaipur pipeline project, where the government had to issue a presidential directive for implementation of the project.

The chargesheet said Banerjee was autocratic, whimsical and arbitrary and had a tendency to question each and every advice or instruction of the ministry and did not leave any opportunity to embarrass the government, including seeking legal opinions by paying hefty fees to his favourite solicitors or approaching the press.

Banerjee is arrogant and it is practically impossible for GAIL consumers and even ministry officials to contact him, it added.