Disinvestment Department for speedy appointment of independent directors in PSUs

NEW DELHI: The Disinvestment Department wants ministries concerned to fast track appointment of independent directors in PSUs like BHEL and RINL, so that they can move ahead with the stake sale programme.

"We have been reminding regularly to the concerned ministries to expeditiously appoint independent directors at least in those PSUs which have been identified for disinvestment," a disinvestment ministry official told PTI.

Clause 49 of the Sebi regulations mandates that half of the company's board should comprise independent directors.

BHEL, which has already filed draft papers with Sebi for a Rs 4,000 crore follow on offer last month, needs two more independent directors on board.

Currently, BHEL has 13 directors, including Chairman and Managing Director B P Rao. Out of them, only five are independent directors.

"We are ready with BHEL. But Sebi will not give final approval before the listing requirements are fulfilled. This delays the process," the official said.

As against the disinvestment target of Rs 40,000 crore in the current fiscal, the government has so far raised only Rs 1,145 crore.

Besides, Rashtriya Ispat Nigam Ltd (RINL) also needs three more independent directors to meet the Sebi requirement. The government has already circulated a draft Cabinet note for carrying forward the Initial Public Offer (IPO) of through which it will divest 10 per cent stake in the Navratna firm.

In Hindustan Copper (HCL) the government needs five more independent directors to meet the listing norms. Currently, there are nine directors on HCL board, including CMD Shakeel Ahmed.

The official further said that the upcoming IPO of construction firm NBCC could also face some delay on account of inadequate number of independent directors.

The government plans to raise Rs 250 crore through the NBCC share sale and the issue is in advanced stage of preparation.