In rare move, govt shortlists pvt firm official for PSU board

Sat, Nov 7 06:47 AM

In an unusual trend, the Union government, through the petroleum ministry, has recommended an employee of a rival firm to head the marketing department of GAIL India Ltd, a public sector undertaking. Prabhat Singh is director, business development, at British Gas Group — a leading player in the global energy market — which operates through Gujarat Gas Company Limited in India and competes directly with state-owned GAIL India.

For board-level appointments in PSUs by the Public Enterprise Selection Board (PSEB), employees from within the PSU are normally preferred. "The government has recognised the need to develop a cadre of professional managers within the public sector. Hence, unless markedly better candidates are available from outside, internal candidates, employed in the public sector enterprise, will be preferred for appointment to board-level posts,"an official said.

A high level source in the petroleum ministry told The Indian Express that a total of 32 candidates were interviewed for the position at GAIL India. After the interview process was completed, Singh's name was recommended over others, including that of GAIL India. "The second name in the preference list is of J Wason, who is currently executive director of GAIL India," the source said. The source said it is unusual that a private sector executive be appointed to a board level position in any profit-making or navratna PSU.

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