The government to divest 30.8 per cent of its 54.8 per cent stake and transfer the management control.
Three senior management level executives will leave Container Corporation of India Ltd (Concor) soon to join other state-run firms, a development that industry watchers believe could be due to the impending privatisation of the state-run rail hauler and the uncertain career prospects thereafter.
Rahul Mithal, currently director (projects and services) at Concor, has been picked by the Public Enterprises Selection Board (PESB), the government’s head-hunter, to be the next Chairman and Managing Director of RITES Ltd, an engineering consultancy in the transport infrastructure sector. RITES is a public sector undertaking controlled by the Ministry of Railways.
Santosh Kumar Jha, an executive director with Concor, has been selected by the PESB for the director (operations and commercial) role at Konkan Railway Corporation Ltd.
Anuj Kumar, a group general manager at Concor, has been selected as the next director (finance) of Central Warehousing Corporation Ltd by the PESB.
All three appointments will have to be signed off by the Appointments Committee of the Cabinet led by prime minister Narendra Modi.
The government has decided to privatise Concor by divesting 30.8 per cent of its 54.8 per cent stake to a private firm and transfer the management control.
The transaction process is yet to be rolled out without a clear policy on leasing land from the Indian Railways for running some of its inland container depots (ICDs) and rail terminals.
Exodus of senior executives
Concor faced an exodus of senior executives in 2006 when the government opened-up the container train operations sector to private investments. Private firms who bought licenses from the government to run container trains poached executives from Concor to run their operations. Some of these executives went on to head private container train operators.
The three executives slated to leave Concor will join other public sector undertakings operating in related business lines.
“At other times, these would be normal career moves. But now, it also possibly reflects some anxiety due to the imminent privatization. These migrations will not affect the functioning of Concor as it has sufficient cushion,” said a former Concor executive who moved to the private sector after container train operations were privatised.
Source: The Hindu Business Line