"We stand by them (ONGC management)," said Minister for Heavy Industries and Public Enterprises Santosh Mohan Dev.
Speaking to reporters on the sidelines of a conference of CEOs of public sector enterprises, the minister said the present rules permit a maximum of two government directors on board of a PSU and ONGC already had two government directors.
Oil and Natural Gas Corporation chairman and managing director Subir Raha had threatened to resign over what he termed as "intimidation" by the Petroleum Ministry officials in pushing for appointment of V K Sibal, Director General of the Directorate General of Hydrocarbons and M S Srinivasan, Special Secretary, Ministry of Petroleum and Natural Gas.
DPE officials stated that under the present rules the maximum number of government directors on board of a PSU could be one-sixth of the total strength of the board or two, whichever is lower.
Following the standoff with Raha, the Petroleum Ministry had written to DPE seeking its opinion on appointment of additional directors over and above the prescribed two, in view of the fact that ONGC was India's most valuable company and the government needed to exercise more control.
The opinion of the DPE is likely to put an end to the controversy as Petroleum Minister Mani Shankar Aiyar had stated that he would abide by whatever the DPE recommended.
