The decision to replace 50-year-old Raman comes days after the Narendra Modi government assumed office.
"Raghu Raman's tenure has ended on May 31. We are looking for a new professional to appoint as the new CEO of NATGRID," a senior Home Ministry official said.
Raman was drawing a salary of Rs 10 lakh per month besides other entitlements of top officers.
National Intelligence Grid, one of the UPA government's biggest showpiece internal security projects, was set up after the Mumbai terror attack in 2008.
In the first phase, 10 user agencies and 21 service providers will be connected, while in later phases about 950 additional organisations will be connected and another over 1,000 organisations in the subsequent years.
These data sources include records related to immigration entry and exit, banking and financial transactions and telecommunications.
The agencies include the Intelligence Bureau, local police and revenue and Customs departments.
There are around 70 personnel, drawn from both the Government and private sectors, in NATGRID.
Raman had joined the Indian Military Academy in 1986 after graduating from Sri Venkateshwara College, Delhi.
He quit as Captain in 1998 to pursue other interests. Before joing NATGRID, Raman was the CEO of a joint venture between Mahindra and British Aerospace, Mahindra Defence Land System, in 2009.
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