PSUs must hire the best for top jobs

The Directorate General of Hydrocarbons (DGH) is set to have a dedicated cadre of people drawn from public sector companies. It is a good idea to equip the upstream regulator with domain experts, but a bad idea to allow entry only to professionals from state-owned enterprises. Lateral recruitment of technical experts must be encouraged as the country needs to attract long-term investment in the capital-intensive exploration and production (E&P) sector. The Ashok Chawla panel, appointed by the group of ministers on corruption, told the government not to allow state oil executives to return to their parent cadre after working on deputation at the DGH, saying it leads to conflict of interest. The DGH’s administrative council has reportedly agreed to repatriation, saying this is a pragmatic solution. The government must take a holistic view to overhaul the DGH to ensure sound regulation, oversight and investor comfort.

All regulatory agencies and PSUs deserve the best talent. However, ministers often view PSUs as their fiefdom and seek to appoint their favourites for top jobs. This is untenable. True, we have the public sector enterprises selection board to select professional managers, but it lacks credibility. We need to restore its credibility and end crony appointments.

The PSEB gives preference to internal candidates employed in a PSU for board-level posts. And if internal candidates are not available, preference is given to those working in other PSUs within the same sector or group. Mobility within the public sector is fine, but it also makes eminent sense to rope in talent from outside. Attractive salaries are a must to retain talent. The government should also complete the selection process for CEOs in advance as the retirement dates are given. Professionalism alone can ensure optimal performance.