Rao takes over as Gail CMD

NEW DELHI: The government has denied extension of service to Gail CMD Proshanto Banerjee. Mr Banerjee, whose term came to an end on Saturday, was denied an extension of service till his superannuation a year from now, official sources said.

Senior most director SP Rao, director (projects), has been made acting CMD till a full appointment is made. Company officials said Mr Rao took office on Sunday.

Sources said Mr Banerjee was denied an extension of service because of “his style of functioning and alleged victimisation of officials, including a director of the company board”.

A six-page virtual chargesheet against Mr Banerjee, prepared by the petroleum ministry, said: “The performance of Banerjee leaves a lot to be desired. His relationship with other organisations is rather a handicap in the growth of Gail.

His style of functioning has antagonised a large section of officers and employees...there are many instances of selective victimisation of officers and employees by Banerjee.”

On the performance of Gail during the last five years, the ministry said: “The profitability of the company is primarily due to its monopoly status in gas transmission and availability of APM gas for its petrochemicals and LPG plant.”

Sources said the biggest blow to Mr Banerjee’s claim for a year extension was a report of SC/ST commission, which indicted him of “victimisation and harassment” of SP Rao. Mr Banjeree had not forwarded the application of Mr Rao for the post of MD of Petronet LNG Ltd.