No foreign CEOs for desi cos: govt

NEW DELHI: The government may restrict foreign companies from having a non-Indian CEO in sensitive sectors like telecom, media and in certain infrastructure projects.

All sectors where the CEO and MD are likely to have access to sensitive government information and systems are likely to be barred from having a foreigner at the top post.

“The government reserves the right to restrict a company with foreign direct investment (FDI) from having foreigners in top key positions as a part of its FDI policy,” a senior official in the ministry of commerce and industry told ET. Even if a project has 100% FDI, it may not be possible for the foreign investor to have a man of its choice at the top position, he added.

The policy extends to all sensitive sectors like ports, airports, telecom companies and select sections of print and electronic media. The government has already expressed reservation on the appointment of a foreign CEO in GMR’s Delhi airport case. In this case, a Greek CEO has been appointed.

The reason is that once the company has a foreigner as a CEO, he will be able to attend strategic meetings and have access to secret information. This will pose a potential security threat for the country, sources said.

Tata Teleservices, which has a foreigner, Darryl Green, as its CEO, is still awaiting an STD licence till a clear picture on the legitimacy of having a foreign CEO emerges. So far, if a company in the telecom sector needs a foreign CEO, it requires the home ministry’s approval.