Eighteen PSU officials in race for GAIL top job

Eighteen candidates from state-owned companies have applied for the post of chairman and managing director (CMD) of the country’s largest gas marketer, GAIL India, nine months before the incumbent retires.

Five from GAIL have applied for the top job. They include Director (marketing) BC Tripathi, Director (business development) AK Purwaha and two executive directors. Director (finance) RK Goel was earlier disqualified by the Public Enterprises Selection Board (PESB) as he did not have the required number of years left before retirement.

Bharat Petroleum Corporation’s Director (refineries) RK Singh, along with candidates from other state-owned companies such as Cement Corporation of India, Power Grid Corporation and Hindustan Machine Tools, have also sent their applications to the PESB.

“It’s a long list. The interviews should start by February next year,” said an official in the petroleum ministry, under which GAIL operates.

According to rules, a candidate applying for the post of chairman in a public sector enterprise should have at least two years of service left from the date on which the post falls vacant.

Goel will have 19 months of service left when the current CMD, UD Choubey, retires in July 2009. However, for public sector banks, an applicant needs to have only 21 months of active service left at the beginning of the financial year when the post falls vacant.

Choubey had taken over the post in November 2006.

GAIL is in the process of doubling its pipeline length of around 11,000 km from around 5,000 km. It has entered into agreements with gas producers such as Reliance Industries and ONGC for transporting more gas. Gas importers such as Petronet LNG and Shell Hazira are also expanding their import facilities in Gujarat, which will give GAIL higher volumes.

The company is spending close to Rs 18,000 crore on these new pipelines, which will be completed by the end of 2012. It also plans to spend over Rs 15,000 crore for setting up new petrochemical plants and expanding the capacity of its only petrochemical plant at Pata in Uttar Pradesh.