New Delhi: The government has declined Bhuwan Chandra Tripathi, the country's longest-serving head of a major PSU, a third extension as Chairman and Managing Director of India's biggest natural gas firm GAIL India Ltd, sources said.
Tripathi, 59, who was the youngest person to become a chairman of an oil and gas PSU in August 2009, completes his second five-year term on July 31 and was eligible for an extension till his date of superannuation on January 31 next year.
Sources said the government has, however, declined an extension. While no official reason has been given for the denial of extension, he was the person who stood between plans of splitting GAIL into two by hiving-off gas pipeline or the marketing business into a separate unit for a possible sale to a strategic investor.
Widely rated as one of the finest CEOs in the petroleum sector in the country, Tripathi is credited with steering the GAIL through several challenging times in project management. He was the youngest chairman of a PSU when he in August 2009 took over as the head of GAIL and is the longest-serving one of a major PSU.
During his 10 year tenure, GAIL saw three-fold growth in turnover to over Rs 74,000 crore, doubling of profit to over Rs 9,000 crore, a three-time growth in asset base and about two-and-half times growth in market cap to around Rs 78,000 crore. GAIL is now virtually a debt-free company.
From aggressive foray into city gas business and striking Henry Hub linked LNG import deals, he is also credited with leading GAIL's transformation into the league Global Top 10 gas majors with his aggressive globalisation moves and opening up of GAIL offices in the US, Singapore, and Myanmar.
The Department of Personnel and Training (DoPT) has communicated to the Petroleum Ministry the decision of the Appointments Committee of the Cabinet (ACC), which was seized of the issue after Oil Minister Dharmendra Pradhan had recommended an extension early this year, they said.
DoPT, however, did not give any reasons for denying Tripathi an extension, they added. According to sources, the order noted that the senior-most director of GAIL be appointed as interim Chairman and Managing Director till a full-time head is selected.
Director (Projects) Ashutosh Karnatak is the senior-most director on GAIL board and is likely to named interim chairman. Some months back, the ACC had approved an extension of Karnatak's tenure by 16 months till his superannuation age of 60 years to be achieved in June 2020.