New Delhi, Sept. 5: The petroleum ministry is unlikely to insist on putting director-general of hydrocarbons, V.K. Sibal, on the ONGC board in the face of stiff opposition from chairman Subir Raha.

The issue will be “amicably resolved” with the ONGC chairman, a ministry official told The Telegraph. He dismissed as “mere speculation” media reports suggesting the petroleum ministry would force the Oil and Natural Gas Corporation (ONGC) management to accept Sibal as a director at the company’s annual general meeting on September 22.

Raha has, in a letter to petroleum minister Mani Shankar Aiyar, said he “may be forced to resign” at the AGM if the government takes recourse to such an action.

Sibal lashed out at Raha today, saying his opposition amounted to an act of “gross indiscipline”. “My appointment on the ONGC board was made by the President and not by the petroleum ministry. The action of not accepting my appointment amounts to indisciplined behaviour,” Sibal said.

On Raha’s threat, he said, “If someone wants to resign, that person should resign. What is the use of threats?”

Raha himself refused to be drawn into the controversy over the appointments. “No comments,” he said.

The petroleum ministry had decided in April that special secretary M.S. Srinivasan and Sibal would be appointed as government directors on the ONGC board, which already had as many representatives of the petroleum ministry. However, Raha had raised objections on the ground that department of public enterprises (DPE) guidelines provide for only two government directors. Any increase in the number would impinge on the autonomy of the navratna company.

Raha had also objected because the director-general of hydrocarbons is the official regulator of the upstream sector and, as ONGC director, he would have access to the company’s business secrets. As a result, there will be a conflict of interest between these two roles. The petroleum ministry had taken stand that Sibal is not a statutory regulator like the Trai or Sebi chairmen, but merely a government representative.

According to the petroleum ministry, Sibal would be able to advise ONGC better as he is aware of the best global practices being followed in oil exploration in his capacity as the director-general of hydrocarbons. The ministry had pointed out that this input could prove useful for ONGC, which has failed to make big discoveries in recent years.

Raha had refused to attend a meeting on the issue called by the petroleum ministry in August and written a five-page letter to the minister.