Govt unshackles PSU oil firms

Undoing Mani Shankar Aiyar's move to exercise greater control on public sector oil firms, the petroleum ministry has restricted the number of government directors on boards of public sector oil companies to just two.

Aiyar, as petroleum minister, had wanted to pack boards of oil firms particularly India's top oil producer Oil and Natural Gas Corp (ONGC) and its overseas subsidiary ONGC Videsh Ltd with more government directors to have a greater say in the operation of these companies.

Petroleum Secretary M S Srinivasan last month issued orders restricting number of government directors to just two, on boards of all oil firms under his ministry, industry sources said.

Instead of four directors envisaged by Aiyar on board, the new dispensation would have only additional secretaries of ministry of petroleum and natural gas and department of economic affairs representing for government's 74 per cent stake in the company.

Aiyar wanted three directors from his ministry and one from DEA on ONGC board.

OVL would now have petroleum ministry's additional secretary (international co-operation) and a joint secretary from department of economic affairs instead of three directors (all from petroleum ministry) put by Aiyar.

Sources said the three oil ministry directors each on boards of refiner Indian Oil Corp (IOC), gas firm GAIL (India) Ltd and exploration firm Oil India Ltd (OIL) would be replaced by just two nominees.

While IOC and GAIL would have ministry's additional secretary and joint secretary and financial advisor, OIL would get joint secretary (exploration) and a joint advisor from petroleum ministry.