Decks have been cleared for acting chairman D K Mehrotra to become the regular chairman of Life Insurance Corporation, as the finance ministry has decided to send his name to the Appointment Committee of Cabinet (ACC) for final approval.
A senior finance ministry official said on Tuesday that Mehrotra has been cleared by a high-level committee headed by finance secretary R S Gujral. “His name is now being sent for ACC approval,” the official told Business Standard.
On October 29, the panel had interviewed five candidates in its bid to select the regular chairman for the country’s largest insurer, founded in 1956. Besides Mehrotra, the candidates interviewed were Sushobhan Sarkar (executive director, international operations), D Vijayalakshmi (executive director, investment), Thangam Matthew (executive director, underwriting and reinsurance) and D D Singh (zonal manager, south).
The selection panel comprised department of personnel & training secretary Alka Sirohi, financial services secretary D K Mittal and IRDA chairman J Hari Narayan among others.
Mumbai-headquartered LIC has been without a full-time head since this May, when chairman T S Vijayan’s five-year term ended and the government did not grant him extension despite his having about two years of service tenure left.
That time, as an interim arrangement, Rakesh Singh, additional secretary in the finance ministry, was appointed LIC chairman. Subsequently, the insurer’s managing director Mehrotra was asked to officiate as chairman.
In June, the selection panel had met to take a call on finalising names for the new chairman. It could not reach a decision, as candidates did not have the required clearance of the Central Vigilance Commission.