Capital goods major Bharat Heavy Electricals Ltd (BHEL) head B.P. Rao is set to get a two-year extension. His present term ends on December 31.
A committee of secretaries set up by the Government to look into giving extension is believed to have submitted its report and now it is up to the Government to take a final call, a senior Government official said. The Government was earlier reluctant to give an extension, fearing that it would become a precedent. “In order to avoid litigation, the Government sought a view from the committee,” the official said, adding that now it appears that Rao will not have to demit office tomorrow.
However, there are expectations that an extension for Rao may pave the way for two others Chairman and Managing Directors whose terms are ending -- Sudhir Vasudeva of ONGC and R.S. Butola of Indian Oil. Vasudeva’s regular term ends in February, while Butola will retire in May. The Oil Ministry is pushing hard for a two-year extension for Vasudeva.
These developments are taking place even as the Cabinet is yet to consider a proposal on a fixed three-year term for public sector chiefs. This recommendation is a part of the PSU reforms agenda and is based on recommendations of the Roongta panel. The proposal talks about a three-year minimum fixed tenure for a PSU chairman, to continue even after the age of 60.