Unified Leadership: ONGC's Structural Synergy Drive

A panel report suggests that the Oil and Natural Gas Corporation (ONGC) chairman should also lead its subsidiary, Hindustan Petroleum Corporation (HPCL), to align with global practices. The panel, formed to enhance synergies between the two entities, recommends streamlined management amid ongoing leadership challenges in HPCL.

A report proposing structural changes within India's oil sector has recommended that the Oil and Natural Gas Corporation (ONGC) chairman also serve as the head of its subsidiary, Hindustan Petroleum Corporation (HPCL). This suggestion is aimed at aligning management practices within the corporate group.

The ONGC had acquired a 51.11% stake in HPCL in January 2018, becoming its parent company. However, HPCL has been operating independently, with its chairman not reporting to ONGC or its board. This separation of leadership has prompted ONGC to seek synergies through a panel, which included former industry leaders.

The panel's report supports a unified leadership structure for ONGC and its subsidiaries, recommending that all direct subsidiaries be governed by a single chairman. The report's suggestions come at a time when HPCL faces leadership vacancies, as both its former chairmen and directors have retired, awaiting new appointments.

(With inputs from agencies.)