According to insiders at the government-owned steelmaker, some managing directors may be shifted. But the process will begin with the selection of a new commercial director, one of the most important posts at SAIL now in the backdrop of the sluggish market conditions.

Sources said four names are being considered: Bhilai Steel Plant managing director V Gujral, Bokaro Steel Plant managing director BK Singh, Indian Iron & Steel Co managing director GS Garcha and SAIL projects director SCK Patne.

KAP Singh was known to be unhappy at his post for some time now, but his resignation was not really expected. He was eyeing the post of SAIL vice-chairman, which has been vacant since Arvind Pande took over as chairman. However, V Gujral not only has first claim to this post, his chances have been kept alive by the extensiongranted to him on at his Bhilai post.

SAIL insiders said KAP Singh's term as SAIL's commercial director was riddled with controversies. As managing director of Bokaro earlier, he had flooded SAIL's stockyards with sub-standard hot rolled (HR) coils. As commercial director, he had to get rid of the same stocks, which he did with the help of heavy rebates. KAP Singh also gave some key posts to his close aides from Bokaro.

The managing directors of the steel plants have been highly critical of the low realisation by the marketing wing, but KAP Singh's failure on this front and his resignation have put them in an awkward position.

Both V Gujral and BK Singh are reported to be averse to this posting. Considering the present equations in the SAIL board, Garcha's prospect does not seems to be bright, the sources said. The only person who is reported to be keen on this posting is SCK Patne.

SAIL has kept two directors' slots vacant for quite some time. The work of raw materials director is being looked afterby operations director Suresh Pandey, and that of corporate planning is being handled by personnel director Mihir K Moitra.

The persons tipped for these positions would have to bypass some senior executive directors, if they are to be posted now. However, with one more vacancy, the door for promotions of at least three executive directors is wide open.

SAIL chairman gets extension

SAIL chairman Arvind Pande and four directors, who were scheduled to retire in 1999 or 2000, have been granted extensions by the Public Enterprises Selection Board, according to sources.

The PESB has followed a dual policy. Persons who are yet to complete five years in office as chairman or director have been given extensions of up to five years from the date of their original appointment. Thus Arvind Pande will now continue till January 2002, personnel director Moitra up to September 2000, Durgapur Steel Plant managing director SB Singh up to February 2001, Iisco managing director GS Garcha up to February2000.

Bhilai Steel's V Gujral, who had completed five years of office on December 31, 1998, was initially given a three months extension by the steel ministry. Now, the PESB has extended his term up to August 2001.

Since the PESB has followed two sets of rules, it may be presumed that the SAIL chief and other directors, on completion of five years in office, would get extension up to 60 years of age. However, some uncertainty will prevail as extensions cannot be taken for granted.