New Delhi: State-run power equipment maker BHEL's current Chairman and Managing Director B P Rao has become the first PSU head to receive a two year extension of his tenure starting today.
Rao who was due to superannuate on December 31, 2013, has been granted extension for a period of two years with effect from January 1, 2014, BHEL informed the stock exchanges.
"Department of Heavy Industry, in a communication dated December 31, 2013, has conveyed approval for the extension of tenure of B Prasada Rao, CMD BHEL," the company said in a regulatory filing.
Earlier this week, a panel of secretaries set up by the Prime Minister's Office (PMO) recommended granting a two year post-retirement extension to Rao.
The extension was given, by the committee headed by Pulok Chatterji, Principal Secretary to the Prime Minister, on the grounds that the public sector firm needed continuity in decision making.
Rao took over as CMD of the company in 2009.
BHEL, shares were trading at Rs 176.10, down 0.20 per cent on the BSE.