Keen on finance, strong on dissent

It is not common for the Central Electricity Regulatory Commission (CERC) to face internal opposition on its orders. So, when the commission pronounced its landmark judgment in the Adani Power case on April 2, the fact that one of the four commission members disagreed with the others came as a surprise.

What didn't come as a surprise, however, was the exacting nature of the carefully, if not strongly, worded dissent note. The detailed and precise arguments used to establish the dissent came from S Jayaraman. The CERC member has a three decade-long history of handling finance issues related to large-sized power and mining projects, exactly the kind of experience required to understand and interpret the various intricacies at play in the Adani case. The majority order allowed compensation to Adani for the losses incurred in running the 4,200-Mw Mundra project, owing to the costly purchase of imported coal after a legislative shift in Indonesia.

But Jayaraman highlighted the need to factor in gains to Adani's Indonesian subsidiary, the power generator's commitment to supply power at the competitively-bid tariff and the fact that the company willingly chose to include energy charge under the non-escalable head. The finance and management expert did not stop at that. He went on to argue CERC shouldn't interfere in what he saw was a commercial dispute between two parties.

A look at Jayaraman's curriculum vitae explains his strengths. The 65-year-old has spent decades planning, designing, executing and managing large infrastructure projects. With 35 years of government service, Jayaraman is known in bureaucratic circles as the longest-serving member on public sector undertaking (PSU) boards. He has experience of more than two decades in major PSUs.

Jayaraman is a graduate in science from Madras University. His public sector experience began with National Aluminium Company (Nalco), where he handled key assignments. Former colleagues at Nalco describe Jayaraman as a simple, but strong administrator. "His main strength is financial analysis. His financial bent of mind must have helped him at CERC, too. He is remembered as a mentor and a manager who was very firm on his decisions," a former Nalco colleague told Business Standard, on condition of anonymity.

He added while at Nalco, Jayaraman contributed immensely as regional manager (North) posted in the national capital. "One of the key functions of our Delhi office is to liaison with the government, and the company benefited through Jayaraman's effective liaison skills, too," he said, adding Jayaraman had a straight-forward approach to issues. When asked to comment on the CERC order in the Adani Power case, Jayaraman told this reporter he wouldn't comment, as the matter was sub judice. He added his views had been covered in the dissent order.

At 40, Jayaraman took charge as director (finance), Mineral Exploration Corporation Limited. Five years later, in 1993, he became director (finance) of the National Mineral Development Corporation (NMDC), India's largest state-owned iron ore miner. Former NMDC chairman P C Gupta describes Jayaraman as "somebody who does not have much air about him". Gupta recounted how he was extremely touched when, at a gathering, Jayaraman introduced him to others in a particularly humble tone. "I was retired then. These days, most people find it below their dignity to walk up to retired officials. But he was different. He was so humble, he introduced me to the others, too," Gupta said. This was despite the fact that Gupta retired long before Jayaraman joined NMDC.

Jin 1998, Jayaraman became director (finance) at Neyveli Lignite Corporation (NLC). The company mines lignite in a number of states. Jayaraman oversaw the company's foray into power generation. Not surprisingly, he moved up the NLC executive hierarchy and, in 2002, became the company's chairman and managing director. In September 2008, at 60, he became a CERC member.

It is not difficult to comprehend where Jayaraman derives his financial analysis and management skills from. He is a fellow member of the Institute of Cost and Works Accountants of India. He was part of the strategic management programme at the Management College, Henley-on-Thames, UK. Early in his career, he also received training in subjects ranging from financial management, management accounting and foreign exchange to the World Trade Organization.