RS Sharma will step down from the post of chairman and managing director of ONGC, India’s most valued firm. Sharma had been officiating as the chairman of ONGC since the end of May 2006, when the government decided not to extend the term of his predecessor Subir Raha.
The Public Enterprise Selection Board had selected him for the top job on August 30, 2006, but the recommendation was not accepted by the Prime Minister’s Office (PMO). He is also the director (finance) of the company. He had earlier said he would continue to function as the ONGC chairman till the new incumbent took charge.
Speaking to ET, Mr Sharma said, “An acting chairman has a limited mandate and cannot take bold decisions. I am completely submitted to the administrative mechanism. I was considered as the soft-spoken guy and kept a low profile. Though not as dynamic as my former chairman, I have done my best for the company with the limited powers that I had.” He also confirmed that he was not going to apply again for chairmanship but would continue as director, finance.
The Centre last week annulled the appointment of Mr Sharma and decided to hold fresh interviews for the position. The government has not listed the reasons for scrapping his appointment. His candidature had clearances from ministries of petroleum, home affairs and personnel. He also was given a vigilance clearance by the Central Vigilance Commission (CVC).
Soon after the government scrapped Mr Sharma’s appointment, the ONGC scrip fell by Rs 16 despite a positive rally in the market on February 7. It lost over Rs 3,500 crore worth market value in a single day. ONGC shares had peaked to an all time high of Rs 1,514 on May 10, 2006, when the company had Mr Raha as full time chairman.
The Public Enterprise Selection Board had selected him for the top job on August 30, 2006, but the recommendation was not accepted by the Prime Minister’s Office (PMO). He is also the director (finance) of the company. He had earlier said he would continue to function as the ONGC chairman till the new incumbent took charge.
Speaking to ET, Mr Sharma said, “An acting chairman has a limited mandate and cannot take bold decisions. I am completely submitted to the administrative mechanism. I was considered as the soft-spoken guy and kept a low profile. Though not as dynamic as my former chairman, I have done my best for the company with the limited powers that I had.” He also confirmed that he was not going to apply again for chairmanship but would continue as director, finance.
The Centre last week annulled the appointment of Mr Sharma and decided to hold fresh interviews for the position. The government has not listed the reasons for scrapping his appointment. His candidature had clearances from ministries of petroleum, home affairs and personnel. He also was given a vigilance clearance by the Central Vigilance Commission (CVC).
Soon after the government scrapped Mr Sharma’s appointment, the ONGC scrip fell by Rs 16 despite a positive rally in the market on February 7. It lost over Rs 3,500 crore worth market value in a single day. ONGC shares had peaked to an all time high of Rs 1,514 on May 10, 2006, when the company had Mr Raha as full time chairman.
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