The big short in oil & gas PSUs: Lack of leadership in sector hurting India

The government deplores the lack of good leadership in these companies but it adds to the problem with sub-optimal appointment practices for chief executives in this sector

An industry expert, who requested anonymity, said: “Unless the government decides which companies will remain state owned and which will be privatised, the candidate pool will not expand”
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This short tenure partly explains why state-owned oil and gas companies are struggling to get leaders

Subhomoy Bhattacharjee New Delhi
How many years should the chairman of a state-owned company have at the job? Last week, the finance ministry decided it should be five years, extendable to 10 years, for the 12 state-owned banks. Curiously, the petroleum and natural gas ministry has decided to offer a three-year term for the job for companies that come under its purview. The other ministry with big state-run companies under it — power — is yet to take a call. But these differences could further delay the appointment of the chief at India’s flagship oil and gas exploration company, ONGC.

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First Published: Nov 22 2022 | 6:29 PM IST

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