B Prasada Rao (BHEL CMD) may have to face a challenging situation ahead. ‘Indianmandarins’ has reliably learnt that extension (for two years beyond superannuation) given to BHEL CMD by the UPA-II government is being reviewed by the Government of India. Prasad was scheduled for retirement on December 31, 2013 but UPA-II Government had granted him extension for two years beyond superannuation.
The Government is reported to have started examining the circumstances under which Rao was given such an extraordinary extension. Interestingly, PESB had selected and recommended Prakash Chand’s (ED, Haridwar unit of BHEL) name to ACC in June 2013 for appointment as CMD after Rao’s retirement on December 31, 2013.
As per the provisions only CMD of a sick PSU can be given extension if he/she is expected to bring a turnaround to the company’s balance-sheet. BHEL, being a ‘Maharatna’ company, did not have any such circumstances prompting the UPA-II government to take such an extraordinary decision.