OIL puzzle: Why did PESB select Borah 3 months after rejection?

The Government on Wednesday named U P Singh, a joint secretary with the oil ministry, interim chairman and managing director of national hydrocarbon exploration and production company Oil India Ltd (OIL) after the appointment of a regular head was delayed because of questions being raised about the shortlisted candidate. 

U P Singh, Joint Secretary (Exploration), Ministry of Petroleum and Natural Gas, “assumed additional charge as chairman and managing director” on Wednesday in place of S K Srivastava who superannuated on Tuesday, Oil India Ltd said in a filing to the stock exchanges.

Singh was made acting chairman after questions were raised over the selection of Oil India Ltd Director (Finance) Rupshikha Saikia Borah to lead the company by government headhunters Public Enterprise Selection Board (PESB).  In November last year PESB had found all the candidates, including Borah, not suitable for the job. But just three months  later, in February this year,  the Public Enterprise Selection Board  shortlisted her after initiating the process afresh.

Sources said that after her name was moved by the Ministry of Petroleum and Natural Gas for approval by the Appointments Committee of Cabinet (ACC), the Prime Minister’s Office (PMO) sought to know what had changed between November and February that led to her selection. While the queries raised by the Prime Minister’s Office were being addressed, Srivastava retired and <g data-gr-id="34">charge</g> was handed over to senior Indian Administrative Officer (IAS) officer U P Singh.

Normally, in cases where the appointment of a regular chairman is delayed, <g data-gr-id="28">interim</g> charge is handed over to the <g data-gr-id="25">seniormost</g> director on the company’s board. In case of Oil India Ltd, Borah, who is the wife of former OIL Chairman and Managing Director B C Borah, is the <g data-gr-id="26">seniormost</g> director.

She had become Director (Finance) in October 2013. Sources said that the Ministry of Petroleum and Natural Gas is reasoning that Borah was selected because there wasn’t much of a choice left even after applications were invited <g data-gr-id="20">afresh</g>.

It remains to be seen if the Prime Minister’s Office would be satisfied with this reply and accept Borah’s candidature or a fresh search would be launched.