New Delhi: State-owned SAIL on Thursday said C S Verma has relinquished the charge as Chairman and Managing Director on completion of his tenure and Steel Secretary Rakesh Singh has assumed the charge till a regular incumbent is appointed.
Verma was appointed CMD of the country's largest steel producer for a 5-year term in June 2010 by the previous UPA government, and was eligible for an extension till he attained the superannuation age of 60 years in September 2019.
The government's not extending his tenure to the top job makes him the first 'Maharatna' PSU head to be denied an extension during the current NDA regime.
"Consequent upon completion of his tenure and in pursuance to Ministry of Steel Order dated June 10, 2015, Verma has relinquished the charge of CMD of SAIL w.E.F. June 10, 2015 (A/N)," Steel Authority of India said in a BSE filing.
It said the Steel Ministry in its order dated June 10, 2015 has also conveyed that additional charge of the post of CMD, SAIL has been entrusted to Singh for three months or till the appointment of a regular incumbent to the post or until further orders, whichever is earlier.
"Singh has assumed the additional charge of the post of CMD, SAIL w.E.F. June 11, 2015 (F.N.)," the filing said.
The last time a 'Maharatna' PSU head was denied extension was in May 2006 when Subir Raha's term was not extended as CMD of Oil and Natural Gas Corp. There are 7 state-owned companies which have been classified as 'Maharatna' or largest PSUs and include NTPC, Coal India, IOC, BHEL and GAIL.
Government headhunter Public Enterprise Selection Board will now call for applications to select a new Chairman who will take charge after the approval of Appointments Committee of the Cabinet, a process that may take up to 6 months.
Sources have said that SAIL, Director (Finance) Anil Kumar Choudhary is among the contenders for the post.
Among other large PSUs, power producer NTPC Chairman and Managing Director Arup Roy Choudhury will complete his five- year term on August 31 and will be eligible for extension till he attains superannuation age of 60 years in December 2016. There is speculation he too may not get an extension.
SAIL scrip closed at Rs 60.90, down 3.1 per cent, on the BSE.
