The Appointments Committee of Cabinet (ACC) has approved the restructuring of the Steel Authority of India Limited (SAIL) Company Board.
After the approvals, the four posts of the Chief Executive Officers (CEOs) of Integrated Steel Plants (ISPs) of SAIL are to be elevated as Functional Directors, by designating them as Directors-in-charge of Bokaro, Rourkela, Bhilai and one Director-in-charge jointly for Burnpur and Durgapur steel plants.
In addition to this, the restructuring of the SAIL Board also involves merging the functions and duties of the post of Director (Raw Materials and Logistics) and that of Director (Projects, and Business Planning) with the post of Director (Technical) and its consequent re-designation as Director (Technical, Projects and Raw Materials).
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An official statement said the restructured board of directors of SAIL will consist of Chairman, Director (Finance), Director (Commercial), Director (Technical, Project and Raw Materials), Director (Personnel), Directors in-charge of ISPs, Non-official Directors as per the Companies Act 2013 and 2 Government Nominee Directors as per the Department of Public Enterprises policy.
It is expected that the elevation of CEOs (now Directors in-charge of ISPs) into the company board as Functional Directors would lead to a greater degree of decentralisation of decision making within the company. It will also give more say to CEOs in the future investment decisions that will be made by the SAIL Board.
“The restructuring of the board will facilitate greater de-centralisation and nimble decision making with the Directors-in-charge of plants as direct ACC appointees, with their views having weight in the central corporate governance structure. This will also facilitate a speedy modernisation and expansion programme of SAIL,” the official statement said.
“Directors as in-charge of ISPs would in turn be critical in having the corporation respond with agility in a globally challenging environment,” the statement added.
SAIL aims to reach 50 million tonnes of capacity through brownfield/greenfield expansion and this input has also been considered while formulating the National Steel Policy 2017, having a vision of 300 million tonnes capacity in the country by 2030-31.