Friday, June 24, 2022

Govt mulls higher compensation for ONGC CMD post to lure private sector executives

In its search for the ONGC CMD, the government has been mulling increasing the compensation for the top-most position in order to lure private sector executives for the job

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  • The government is hoping that a private sector executive could help revitalise ONGC, enhance its risk-taking capability and efficiency, said sources
  • According to government officials, a key hurdle in luring private sector executives is the lower compensation paid to PSU executives

New Delhi: At a time when India is trying to increase the domestic production of oil and gas, the government is also looking for a suitable candidate to lead state-run behemoth Oil & Natural Gas Corporation (ONGC) as its Chairperson and Managing Director (CMD), since the PSU is responsible for the lion’s share of India’s total crude oil production. In its search for the ONGC CMD, the government has also been mulling increasing the compensation for the top-most position in order to lure private sector executives for the job.

According to a report published in The Economic Times, a search-cum-selection committee formed in February this year to select the ONGC CMD is planning to seek out private sector executives, sources were quoted as saying.

ONGC CMD: Pvt sector executive might revitalise the PSU

The government is hoping that a private sector executive could help revitalise ONGC, enhance its risk-taking capability and efficiency, said sources. ONGC, which is responsible for around 65 percent of domestic crude oil production and 60 percent of natural gas production, has been without a CMD for over one year now. Currently, Director (HR) Alka Mittal holds additional charge of the ONGC CMD post.

According to government officials, a key hurdle in luring private sector executives is the lower compensation paid to PSU executives. In order to remove this disadvantage, the government is considering an attractive pay package along with other terms that may be necessary for the CMD to function effectively, said sources. However, public sector executives will not be eligible for this pay package, they said.

In June last year, the Public Enterprises Selection Board (PESB) had rejected nine candidates for the position of ONGC CMD.

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