BHEL CMD B P Rao's extension was not under any pressure: Government

NEW DELHI: The decision to extend the tenure of BHEL CMD B P Rao by the previous government was not taken under pressure from "influential persons in the then PMO", Parliament was informed today.

To a query on whether the extension to BHEL CMD was granted under pressure from some influential persons in the then PMO, Minister of State for Heavy Industries & Public Enterprises P Radhakrishnan in a written reply in Rajya Sabha said: "No, Sir".

"Extension of tenure was granted in view of the difficult situation confronting the power sector as a whole and BHEL in particular in the face of adverse economic situation, resulting in inadequate order booking; urgent need to undertake accelerated diversification strategy in both core and non-core business, which entailed the need for continuity in top leadership at such a crucial juncture," he said.

State-run power equipment maker BHEL's current Chairman and Managing Director B P Rao became the first PSU head to receive a two-year extension of his tenure. Rao, who was due to superannuate on December 31, 2013, was granted extension for a period of two years with effect from January 1, 2014.

Rao took over as CMD of the company in 2009. "CMD of BHEL was granted an extension for a period of 2 years beyond December 31, 2013, as a special case, with the approval of the Competent Authority," Radhakrishnan said.