More board directors-EDs as NRL aims high
Numaligarh Refinery (NRL) managing director Bhaskar Phukan is determined to make the Assam-based refiner a Navratna.
As a Navratna company, India's state-owned giants have the financial autonomy to clear proposals worth up to Rs1000cr ($122m) without government approval. "Phukan is preparing a proposal (for the Department of Public Enterprises) to revise director salaries and increase the number of (functional) directors, but we can't disclose how many more directors there will be," says an NRL insider.
"No salary increase is planned for other company employees." Another source adds that an HR director might join the NRL board under the new changes.
NRL has only two functional directors: Phukan and the finance director Sanjay Choudhuri. Girish Kumar Borah, who the PESB recommended as director technical on December 27 (2022), is yet to take charge.
Because it is an Oil India subsidiary, Oil India chairman Ranjit Rath holds the same position at NRL. Three part-time directors sit on NRL's board: one from the Assam government, two from the oil ministry, and two non-official independents.
"There's also a proposal to have four new ED positions," adds our source. Four of eight CGMs will be elevated to ED rank, and at least four GMs will be promoted to vacant CGM positions.
"More CGM positions might also be created," we hear. "The board will decide those positions, not the DPE."
Phukan's payscale is currently in line with a Schedule B company. But it will soon increase after the oil ministry upgraded NRL to a Schedule A company on July 4 (2023), a crucial step towards achieving Navratna status.
On June 23 (2023), NRL was also included in a list of 71 companies with Schedule A status released by the DPE, joining the ranks of ONGC, BPCL, IndianOil, HPCL and Oil India. Since 1965, Indian state-owned companies have been classed as Schedule A, B, C or D based on investment, capital, net sales, profit, the number of employees and other parameters.
With effect from May 9 (2023), Oil India holds a 73.27% stake in NRL; the government of Assam holds 22.88%, and Engineers India holds 3.85%.