New Delhi, Sept. 22: Oil and Natural Gas Corporation (ONGC), the upstream oil giant, will now have five new faces on its board of directors. Three of these will be part-time directors of the wider navratna board.
West Bengal governor Viren J. Shahís son, Rajesh V. Shah, has been appointed as a part-time director along with U. Sundararajan, a former chairman-cum-managing director of Bharat Petroleum Corporation Ltd, and M. M. Chitale, a chartered accountant from Mumbai.
Indian Oil Corporation (IOC), which was until now represented by P. Sugavanam, director (finance), on the ONGC board, has been replaced by . K. Nayyar, director (business).
Both Indian Oil and ONGC have a director on each otherís board as the two public sector companies had bought 10 per cent equity from each other in order to help the government raise resources to bridge the fiscal deficit.
According to sources, P. Sugavanam was appointed as IOCís first director on the ONGC board because of his sharp financial acumen and vast experience in the oil sector. But things had now settled down and it was felt that . K. Nayyar could be given a chance to gain wider experience.
Nayyar will be one of the youngest directors at ONGC. This will also leave Sugavanam with more time to concentrate on IOC which is facing increasing competition in a more liberalised market scenario.
B. K. Das, additional secretary and financial adviser in the petroleum ministry, has also taken over as the new director representing the government following the transfer of Ashok Mitra, the previous financial adviser.
Sources say the various subcommittees in ONGC entrusted with the task of overseeing important areas of work will now be reconstituted. For instance, there is a subcommittee to keep track with the redevelopment of Mumbai high, another to deal with problems related to safety, health and environment and yet another to look after human resource management. There is also a sub-committee to deal with matters related to corporate governance and ethics.