With considerable pain and consternation a veteran of the power sector has shared the colossal decline in standards of leadership of a leading Power sector PSU. Everyone is aware that in the Corporate World those leaders do best who are carefully groomed and through a rigorous process of selection make to the highest position of Chairman and MD. This is in sharp contrast with political leadership based on legacy and entitlements.
The mode of selecting members of the *Board of Directors (BOD), including the **Chairman and Managing Director (CMD)*, at this PSU Power giant has undergone significant changes over the years. What was once a robust system based on merit and experience has gradually shifted, influenced by political and bureaucratic interests.
In the past, leadership appointments followed a more structured approach. Senior officials who had demonstrated their expertise were elevated to key positions. For instance, individuals who had successfully led major manufacturing plants were often selected as *Directors, and the most senior Director would be appointed as the **CMD*. This process ensured continuity and technical leadership within the company.
However, this meritocratic system began to erode over time. The leadership appointments became increasingly politicized. It started with *Executive Directors (EDs)* based in Delhi being favored for promotion to Director positions, despite a lack of extensive operational experience. Eventually, one such ED was appointed CMD, signaling a shift towards a less transparent and minimal merit-based selection process.
The most significant change occurred with the rise of a new political regime, when a rank outsider—previously heading the *Indian Railway Catering and Tourism Corporation (IRCTC)—was appointed CMD. This individual, whose background lay in the **catering division* of Indian Railways, was chosen over senior engineering talent from within the organization, sparking concerns about the motives behind the selection.
Under this new leadership, the CMD reportedly began appointing his own allies to senior positions, further diluting the quality of leadership within the company. At a time when the Company required visionary and innovative engineers to stay competitive in sectors such as *renewable energy*, the influence of bureaucratic and political interests took precedence.
This PSU once an engineering powerhouse with expertise in setting up *solar* and *wind power plants* as early as the 1980s, found itself unable to capitalize on emerging opportunities in the *alternative energy sector*. Despite having the talent and foresight to lead in this space, the company’s potential got stifled by internal politics and a lack of strategic direction.
As a result, private companies like *Adani Green* have since taken the lead in renewable energy development, further highlighting the missed opportunities of this Power Sector PSU. The company’s failure to adapt and innovate in a rapidly evolving energy market stands as a testament to the consequences of leadership dilution and political interference in corporate governance.
In conclusion, this PSU’s decline can be attributed, in large part, to the compromised selection process for its top leadership. At a critical juncture in its history, when it needed the best engineering minds to drive innovation, bureaucratic and political interests were prioritised, ultimately leading to the downfall of one of India’s most iconic public-sector enterprises.
NewsIP has been sharing with its readers the peculiar case of selection of Board Level Members in PSUs be it the Oil & Gas Sector or Power. This certainly does not auger well for the economy of the country as well as it’s citizens. Despite the Media constantly bringing up the matter to the notice of the Bureaucracy.
In fact, reportedly in a recent face to face interaction, in the Oil & Gas ministry with the highest functionary, media was told that selections to Directors & CMDs in PSUs have to go through a “Process”. When asked how long does the so called process take, no satisfactory answer could be obtained. One need not be an expert to fathom what such a ” Process” is. An open admission to a ” Process” existing shows how brazen the powers to be have become. Citizens have full rights to know how their hard earned money given in Taxes is being used. After all PSUs are claimed to be the Temples of Modern India.