As the energy landscape witnesses major changes, the oil behemoth is looking to give current Chairman Shrikant Vaidya the Managing Director role as well. If the appointment goes through, the fuel retailer will get its first MD since it was formally incorporated in 1964.
Following structural changes atONGC,Indian Oilis set to be the next in line for a spring cleaning. The Indian government’s flagship oil refiner is set to see a major board rejig, according to TOI sources.
As the energy landscape witnesses major changes, the oil behemoth is looking to give current Chairman Shrikant Vaidya the Managing Director role as well. If the appointment goes through, the fuel retailer will get its first MD since it was formally incorporated in 1964.
Sources day that the Oil Ministry has approved the re-designation of the chairman’s post and is waiting clearance from the corporate affairs ministry.
In addition, the government is also looking at the abolition of the R&D director post, with incumbentS S V Ramakumarsuperannuating on July 31.
The post is likely to become a new initiative division reporting directly to the chairman.
As of now, the chairman has been carrying out the MD’s function without the designation.
All of the other government companies have a chairman and managing director (CMD) designation.
ONGC‘s restructuring saw Arun Kumar Singh appointed as the head but designated only as chairman and leaving scope for appointment of an MD or CEO.
According to India’s corporate norms, the chairman is the top gun and supposed to manage the board of directors and set policy directions for a company, while the MD or CEO is responsible for the day-to-day functioning and carrying out the board’s directives.
The re-designation of Indian Oil chairman’s post has become a necessity for a smooth interface with private sector and foreign companies as the company seeks collaboration for entering new-age energy and mobility areas.
“Internally perhaps it does not matter. He has been given the powers. But it is important for dealing with outsiders,” TOI sources said.
The government last month had created the post of director (production) by merging the posts of directors onshore and offshore. Another post of director (corporate affairs) was created.
These changes are set to be effective from March 1.
