Panel to consider two-year extension for BHEL chief BP Rao

NEW DELHI: The Prime Minister's Office (PMO) has tasked an informal panel of secretaries to consider a two-year extension of service for power equipment-maker BHEL chief BP Rao.

The panel, which comprises Principal Secretary to Prime Minister Pulok Chaterji, the Cabinet Secretary and the Secretary to Department of Heavy Industries, is likely to meet tomorrow to decide on extending Rao's tenure by two years after attaining superannuation age of 60 years in January, official sources said.

Heavy Industries Minister Praful Patel had sought an extension for Rao but the proposal had not found favour with Cabinet Secretariat and Home Ministry.

The proposal has now been referred to the informal committee of secretaries and there are indications that Rao will get an extension.

Rao took over in October 2009, and retires in January. Government's headhunter PESB has selected Prakash Chand as his successor.

The UPA government has so far steadfastly opposed granting extension beyond superannuation and Rao may be the first head of a large state-owned firm to win an extension.

Sources said an extension is being sought for Rao on the ground that his successor is an executive director and lacks board level experience even though he qualifies and was found fit to be Chairman and Managing Director.