Selection for Petronet CEO starts again

The search for a new head of India's biggest LNG importer, Petronet LNG Ltd, started again today with the post being re-advertised as the earlier process was questioned by a promoter.
Petronet LNG Ltd today issued advertisement seeking applications from persons holding director-level position in public and private sector energy companies by July 15.
"The incumbent should have exceptional leadership qualities demonstrated by his track record, strong negotiation and communication skills, and familiarity with finance/project management in a large organization, and should have held the position of a Director on the Board of companies in the energy sector (private and public)," it said.

The candidate should not be more than 60 years of age on July 16, 2015.
The eligibility criteria is almost the same as the one March 3 advertisement following which seven candidates including Pramod K Bajpai, Director (Finance) of BHEL and a IIT Kanpur batchmate of the then Oil Secretary Saurabh Chandra, had applied.
Though Petronet is a private listed firm, the Oil Secretary is ex-officio chairman of the company.

Unlike in the past when Petronet MD and CEO was selected by a search committee compromising of all the promoters -- GAIL, IOC, BPCL, ONGC and GdF of France, Chandra constituted a three-member panel headed by ONGC Chairman Dinesh K Sarraf.

The committee included two independent directors of Petronet, the first instance of independent directors being involved in selection of chief executive of a company.
Sources said the committee's constitution was questioned by at least one promoter director on not just the inclusion of independent directors on it but also for being headed by Sarraf, who was not the senior most among the promoter directors.
In the March advertisement, the eligibility criteria had been enlarged to include personnel from energy companies as well as those in companies providing construction services to the energy industry instead of previous practice of seeking professionals from oil and gas firms.

Bajpai was considered favourite at that time but the panel did not recommend a consensus candidate, leading to restarting of the process.
Bajpai retired from BHEL on May 31 and will not be eligible to apply this time. Chandra too superannuated in April-end.
New Oil Secretary Kapil Dev Tripathi is the new Chairman of Petronet LNG Ltd.