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Petroleum Minister M Veerappa Moily's recommendation for giving a one-year extension to Oil and Natural Gas Corporation (ONGC) Chairman Sudhir Vasudeva has been rejected, paving the way for ONGC Videsh (OVL) Managing Director D K Saraff to take charge as the company chief from March 1.
Vasudeva's term will end on February 28. Though the petroleum ministry was keen on giving extension to Vasudeva to push the company's strategic initiatives, the Central Vigilance Commission (CVC) had created roadblocks, stating there were six pending cases against the official.
There were media reports that Moily allegedly favoured the official. However, the ministry, in a statement on Wednesday, said, "Considering that only few days were left for his retirement, the Minister of Petroleum and Natural Gas on recommendation of the Secretary, Petroleum referred the matter back to the DoPT with complete vigilance profile of Vasudeva with a request to place the matter before the Appointments Committee of the Cabinet (ACC) for decision, as deemed appropriate."
According to the ministry, the Minister's recommendation "was purely on merit and in the interest of the organisation." On advice of the Department of Personnel and Training (DoPT), the proposal was submitted in the prescribed format for consideration of the ACC.
Saraff was selected by the Public Enterprise Selection Board (PESB) after shortlisting seven candidates, which included GAIL India Chairman and Managing Director B C Tripathi, ONGC Director (T&FS) Shashi Shanker, Security Printing and Minting Corporation of India head M S Rana and Indian Railways Chief Mechanical Engineer Ashwani Lohani. However, Tripathi did not appear for the final interview.
Before taking over OVL in 2011, Saraff was Director (Finance) in ONGC. In the last one year, Saraff was instrumental in sealing several overseas deals, including Anadarko Petroleum Corporation's 10 per cent stake in a giant Mozambique gas field for $2.64 billion. Apart from this, acquisition of Videocon's 10 per cent stake in the same field.
