Ipcl Chief Quits Over Selloff Delay

K G Ramanathan, chairman and managing director of Indian Petrochemicals Corporation Ltd, has stepped down from his post.

Ramanathan had been asked to continue as the CMD until the divestment process was complete. However, since the government is still dilly-dallying on divesting 26 per cent, Ramanathan has put in his papers, IPCL sources claimed. They added that Ramanathan has asked to be relieved at the earliest.

Industry sources claim Ramanathan stepped down as the Public Enterprise Selection Board had queried his extension and his continuation even after the extension ended on December 31, 1999.

According to industry sources, the board has sought the current status of divestment in IPCL from the chemicals and fertilisers ministry. It has also asked the ministry whether it would further extend Ramanathan's term as the government has yet to ask the three shortlisted bidders _ Reliance Industries, Mitsubishi Chemicals and the IOC-Soros/ Chatterjee consortium _ to bid on the basis of the agreed terms.

 

"The board has not cleared any further extension for Ramanathan as it has already shortlisted IPCL's marketing director Chinmaya Bhattacharya and director (personnel) C M Lamba for the CMD's post," said industry sources.

IPCL sources said there had been no communication from either the government or the board. "The PMO has already cleared the extension till the divestment process is complete. The whole idea was that the CMD should continue till the logical end of the disinvestment process," they said.