IOC's Behuria unlikely to be offered new term as CMD

Indian Oil Corp (IOC) Chairman S Behuria is unlikely to get an extension of service when his five-year term comes to an end this month and he is being offered a position at a joint venture firm of oil PSUs.

IOC Director (Business Development) BM Bansal, whose term like Behuria is coming to an end this month, has, however, earned an extension of service till he retires next year and is likely to be appointed acting Chairman.

Behuria's five-year term as head of the nation's largest oil firm ends on February 28 and is eligible for extension of service till he reaches the age of superannuation - 60 years - in March 2012.

Sources in the know said the Oil Ministry was not inclined to give Behuria an extension and a clear indication of this emerged when Petronet LNG Ltd (PLL), a joint venture firm of state owned oil firm, created a new post for him.

The board of PLL, whose Chairman is Petroleum Secretary S Sundareshan, offered Behuria the job of Advisor in the rank and the pay of Managing Director.

Behuria may eventually suceed P Dasgupta who is rumoured to be putting in his papers on health grounds before his term comes to an end in August.

Behuria's performance as Chairman of IOC had been rated as "outstanding" by outgoing Oil Secretary RS Pandey and there were no known corruption charges against him, sources said adding it wasn't clear why he was being denied an extension.

During his term, IOC saw revenues rise over 89 per cent to Rs 285,337 crore from Rs 150,729 crore.

Sources said indications of Behuria not getting an extension first emerged when Public Enterprise Selection Board (PSEB) - the government's premier body that selects board- level executives of the PSUs - could not interview him in the absence of oil ministry completing paper work.

PSEB, as per the practice in case of new appointments as well as extension of service, had a few weeks back scheduled an interview of Behuria but the interface could not take place as crucial papers were not signed by the ministry.

Oil ministry had in 2006 declined Raha an extension as the Chairman and Managing Director of Oil and Natural Gas Corp and a year later GAIL's Prashanto Banerjee went the same way.

Sources said PLL sent an offer letter to Behuria yesterday.

After Behuria, B M Bansal, who is the senior most director on IOC board, may be made the acting chairman till a full-time head is appointed. It wasn't clear why Behuria was being denied an extension and if he was not found fit to continue as head of IOC why was he being offered a job at PLL.

Sources said that at the PLL board meeting recently it was mentioned that a "suggestion" was made to the company to make an offer of employment to Behuria.

The company management moved a special resolution which was not part of agenda for the meeting circulated earlier. It was backed by representatives of ONGC, IOC, GAIL and BPCL, who hold equity stake in PLL.