The big short in oil & gas PSUs: Lack of leadership in sector hurting India

The government deplores the lack of good leadership in these companies but it adds to the problem with sub-optimal appointment practices for chief executives in this sector

How many years should the chairman of a state-owned company have at the job? Last week, the finance ministry decided it should be five years, extendable to 10 years, for the 12 state-owned banks. Curiously, the petroleum and natural gas ministry has decided to offer a three-year term for the job for companies that come under its purview. The other ministry with big state-run companies under it — power — is yet to take a call. But these differences could further delay the appointment of the chief at India’s flagship oil and gas exploration company, ONGC.

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