New LIC chairman to be appointed in 10 days: FinMin

Ending months of indecision, the government is set to appoint a full-time chairman for Life Insurance Corporation (LIC) in the next 10 days, a top Finance Ministry official has said.

"I say it will be very shortly, that could be a week or 10 days," Financial Services Secretary DK Mittal told a select group of reporters here over the weekend. Mittal blamed the delay on the long process to be followed while selecting such a candidate.

LIC has been without a full-time chairman since May, after then-Chairman TS Vijayan's five-year term ended.

As an interim arrangement, the Additional Secretary in the Finance Ministry, Rakesh Singh, was appointed as the Chairman of LIC. Subsequently, DK Mehrotra, the incumbent Managing Director, was asked to officiate as the chairman of the country's largest financial institution.

A selection panel headed by Economic Affairs Secretary R Gopalan had invited four probable candidates for the post in June. But the panel could not come to a decision, as two of the contenders did not have central vigilance clearance.

When asked about the names being discussed, Mittal said, "That's for the selection committee to decide. What I am saying is that this process is on and very shortly, you will get a final [decision]."

According to earlier reports, the shortlisted candidates -- all from within LIC's ranks -- include current Acting Chairman DK Mehrotra, Managing Director Thomas Mathew and Executive Directors AK Sahoo, TT Mathew and KB Saha.

Several questions have been raised about the government's inability to find a full-time leader for LIC, which has assets exceeding Rs 10 lakh crore, especially at a time when it faces competition from over 23 aggressive private players following the opening up of the sector a decade ago.