New Delhi: Against the backdrop of a proposed restructuring of the Board of Directors at Indian Oil Corporation Ltd (IOCL), the Indian Oil Officers’ Association (IOOA) has sought intervention from Prime Minister Narendra Modi to ensure the retention of two posts — Director (Pipelines) and Director (R&D) — warning that any dilution of these roles could impact safety, innovation and strategic execution.
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The IOOA has written to PM Modi, seeking his intervention to preserve Indian Oil Corporation Ltd’s functional board structure, arguing that full-time directors in critical operational areas are essential for a company of Indian Oil’s scale and strategic importance. The association’s letter, dated April 29, says the presence of full-time functional directors is “not merely desirable but essential.”
The letter, accessed by PSU Watch, comes as sources said a proposal for restructuring the Indian Oil board has been sent by the Ministry of Petroleum and Natural Gas to the Appointments Committee of the Cabinet (ACC). According to the sources, the proposal calls for abolishing three board positions and replacing the current structure with five posts: one executive chairman and four functional directors — Director (Refinery & Pipeline), Director (Finance, Subsidiary & Alliance), Director (HR, Planning & Business Development, Strategy), and Director (Marketing). The same proposal, the sources added, has mooted the placement of the R&D department under Director (HR, Planning & Business Development, Strategy).
In its letter, IOOA said it had already made a similar representation to Petroleum Minister Hardeep Singh Puri on January 21 this year. The association argued that Indian Oil’s existing functional board design has been central to its operational safety, innovation and long-term growth. It said that in a company handling refinery expansion, pipeline operations and clean-energy investments, dedicated board-level leadership is needed to preserve accountability and speed up decision-making.
The letter specifically highlighted the importance of Director (Pipelines) and Director (R&D), saying these posts are critical to Indian Oil’s strategic objectives. It noted that the pipeline division, created as a distinct functional entity in 1998, has grown from roughly 6,300 km to more than 20,000 km of crude, product, LPG and gas pipelines, with installed capacities of 130 MMTPA for oil and 49 MMSCMD for gas across 21 states and Union Territories (UTs). The association also said Indian Oil recorded its highest-ever pipeline throughput of more than 100 MMT in FY 2024-25, while 12 major projects of about 2,200 km and more than Rs 20,000 crore are under execution.
The association said the pipeline network operates at pressures of around 100 kg/cm² and passes through populated and environmentally sensitive areas, making board-level oversight vital for integrity management, emergency preparedness and regulatory compliance. It added that the post of Director (Pipelines) has remained vacant since July 1, 2025, creating what it described as a leadership vacuum in a domain of high national consequence.
The letter also warned against any additional-charge arrangement, saying prolonged vacancy or interim handling weakens leadership visibility and dilutes accountability. It said Indian Oil’s governance framework has historically depended on a functionally balanced board, and any change to that arrangement could undermine safety and strategic execution.
IOOA made a parallel case for retaining a dedicated R&D director, saying Indian Oil is the only oil PSU with board-level R&D representation and that this has helped build a strong innovation ecosystem. The letter said the company has filed 1,866 patents, maintained a commercialisation ratio above the global average and developed over 7,000 indigenous lubricant formulations, along with work on refinery technologies, catalysts, drag-reducing agents and nanomaterials.
It said Indian Oil’s research division has also contributed to cleaner fuels, petrochemicals, biofuels including second-generation ethanol, hydrogen energy, carbon capture and waste-to-energy solutions. The association linked this work to national priorities such as Aatmanirbhar Bharat, reduced import dependence and net-zero commitments, while arguing that weakening apex-level R&D leadership could delay decisions and reduce strategic outcomes.
The letter also pointed to the government’s broader research push, including the Rs 1 lakh crore research funding scheme, and said Indian Oil’s R&D function needs focused board-level guidance as the company expands into green hydrogen, carbon capture, advanced biofuels and other energy transition technologies.
In its concluding appeal, the IOOA asked the Prime Minister to ensure early appointment of a full-time Director (Pipelines), maintain continuity of the existing functional board positions, and review any proposal to abolish or restructure those posts in light of safety, strategic and national-interest considerations. The letter says timely intervention would strengthen governance, improve safety oversight and reinforce Indian Oil’s role in India’s energy transition.
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