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NTPC management: Headhunt at India's largest power producer
NEW DELHI — The government of Prime Minister Narendra Modi is looking for a new face to run state-owned NTPC, India’s largest energy conglomerate, after deciding in August not to extend the tenure of Arup Roy Choudhury, the chairman and managing director.
High tension issues in state enterprises have seen senior officials denied extensions of tenure, including at NTPC, India’s largest electrical generating company. © Reuters
High tension issues in state enterprises have seen senior officials denied extensions of tenure, including at NTPC, India’s largest electrical generating company. © Reuters
Choudhury was appointed in September 2010 for a five-year term by the previous United Progressive Alliance government led by the Congress Party, which was voted out in May last year. He castigated the previous government for chronic fuel shortages that compromised power supplies, and warned that NTPC would fall short of its capacity targets.
During Choudhury’s term, 13,000 megawatts of power generation capacity were added to NTPC, lifting the total to 45,500MW.
Choudhury was eligible for an extension until December 2016 when he reaches 60, the mandatory retirement age. He is the second head of a state enterprise to have been denied an extension on Modi’s watch. In June, C. S. Verma of the Steel Authority of India was also turned down despite being only 56.
The government has offered no explanation for not extending either tenure, although they might be viewed as political appointments in some quarters.
R. S. Sharma, the former chairman of Oil & Natural Gas Corp., has criticized the government for not granting “legitimate extension” to Choudhury and Verma.
In a letter to Modi, Sharma said not granting extensions would deter competent professionals from applying for board positions in state enterprises. He also said such moves contradict talk of empowering these organizations.
NTPC is administered by the Ministry of Power, which wants applications to replace Choudhury submitted by Nov. 7. The ministry is also accepting applications, and according to reports is open to candidates from the private sector.
A.K. Jha, NTPC’s technical director, is acting chairman and managing director for three months. With nearly 40 years at the company, he has extensive experience in all aspect of the power business.
Choudhury became the youngest chief of a state enterprise at the age of 44 at National Buildings Construction Corporation. To wrap up his public sector career, he has been appointed the first chief commissioner of the West Bengal Right to Public Service Commission, a body constituted in September to improve delivery of public services and accountability.
