New Delhi: The decision to assign the additional charge of REC’s (Rural Electrification Corporation) CMD (Chairman and Managing Director) to PFC’s (Power Finance Corporation) CMD, Parminder Chopra, has sparked debates within the energy sector. Experts argue that this move raises concerns about decision-making independence and corporate governance.
Industry analysts highlight that both REC and PFC operate in the same domain, making it essential to maintain transparency and avoid any potential conflicts. Some experts believe this is a critical issue that required more deliberation before implementation.
Key Questions Raised:
• Why was a permanent CMD for REC not appointed in advance despite the Ministry of Power’s prior notice in 2023 regarding the former CMD’s tenure ending in March?
• Does this dual role create a governance challenge in ensuring fair competition and independent decision-making ?
Sources indicate that the ministry initially considered appointing a senior official as the interim within, but later opted for a PSU executive. However, this has not quelled concerns about the broader implications of the move.
One expert and ex-recian told the NewsIP that the Ministry was well aware that the internal senior director was retiring in the next three months; therefore, the reins of such an important NBFC could not be entrusted to him. In all, the Ministry failed to appoint the CMD in time.