National Aluminium Co Ltd (Nalco) has terminated the services of its Chairman and Managing Director, Abhay Kumar Srivastava, who was under suspension. This paves the way for the appointment of a new CMD for the company.
The Union Ministry of Mines issued the termination order on December 11. Srivastava was under suspension after his arrest in February 2011. The public sector company has since been run by functional directors with additional charges.
According to sources, early this year the Mines Ministry had formally proposed the termination to the Union Cabinet. The termination will mean discontinuation of salary, all benefits and perks attached to the post of CMD of Nalco.
Sources further said the Public Enterprise Selection Board (PESB) has been asked to initiate proceeding to select a CMD for Nalco.
The Parliamentary Committee on Public Undertakings had particularly been critical of the Union Government about keeping listed navratna Nalco’s top post vacant for years on end. The panel, in its fifth report (2009-10) on Nalco, reprimanded the administrative Ministry for its inept handling of the company’s top executive position.