HPCL head to retain designation if ONGC follows Coal India Model
Hindustan Petroleum Corp Ltd (HPCLBSE -4.64 %) Chairman and Managing Director Mukesh Kumar Surana will continue to hold his designation if the firm’s new promoter, ONGCBSE -1.36 % is to follow the Coal India Ltd-model for governance of subsidiaries.
ONGC last week completed acquisition of government’s 51.11 per cent stake in HPCL for Rs 36,915 crore.
HPCL is now a subsidiary of ONGC and it has been speculated that Surana will lose the Chairman’s tag and would be reduced to Managing Director who would report to ONGC Chairman and Managing Director.
Industry sources said this situation can be completely avoided if ONGC follows the Coal IndiaBSE -1.23 % Ltd’s (CIL) governance model.
It has eight subsidiaries like Eastern Coalfields Ltd and Bharat Coking Coal LtdBSE -1.23 %, all of whom have a board headed by Chairman and Managing Director.