Brought in by UPA, SAIL chief C S Verma retired by NDA; GAIL, NTPC chairmen next?

NEW DELHI: The Center on Wednesday did not allow SAIL chairman C S Verma to continue in his post till retirement after completion of a five-year term, making him the first PSU head to be shown the door by the NDA government.

PSU heads and directors are appointed for five years or till the age of superannuation, whichever is earlier. If a candidate has some years left till superannuation, the government has the discretion to extend the tenure.

Verma was appointed by the UPA government in June 2010 and has time till September 2019, when he attains the retirement age of 60. Steel secretary Rakesh Singh has been given the additional charge as head of the steelmaker for three months.

Verma is the second high-profile PSU head to be denied extension. In May 2006, the UPA government had denied extension to Subir Raha, the flamboyant oilman who metamorphosed ONGC as a flagship energy firm.

Now after Verma's case, all eyes are on NTPC chairman, Arup Roy Choudhury and GAIL chief, B C Tripathi.

Roy Choudhury completes his five-year term on August 31 and will be eligible for extension till he attains superannuation age of 60 years in December 2016.

Tripathi was granted a second five-year term in July 2014 but as per government rules, any appointment to a PSU board for more than three years has to be re-confirmed after one year from taking charge - which, in his case, is next month.

Government headhunter PESB would now call for applications to select a new SAIL chairman who will take charge after the approval of appointments committee of the cabinet.