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Business News/ Politics / Policy/  Govt forms guidelines for appointment of NSDC chairman
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Govt forms guidelines for appointment of NSDC chairman

Move comes after questions were raised over the appointment of S. Ramadorai as the chairman NSDC

S. Ramadorai’s appointment in May prompted questions over a likely conflict of interest because of his presence on the boards of various private companies. He is the vice-chairman of India’s top software exporter Tata Consultancy Services Ltd and the non-executive chairman of newly formed AirAsia India. Photo: Abhijit Bhatlekar/Mint (Abhijit Bhatlekar/Mint)Premium
S. Ramadorai’s appointment in May prompted questions over a likely conflict of interest because of his presence on the boards of various private companies. He is the vice-chairman of India’s top software exporter Tata Consultancy Services Ltd and the non-executive chairman of newly formed AirAsia India. Photo: Abhijit Bhatlekar/Mint

(Abhijit Bhatlekar/Mint)

New Delhi: Following the controversy over the appointment of S. Ramadorai as the chairman of the National Skill Development Corporation (NSDC), the ministry of finance has laid out guidelines for the head of the agency.

The guidelines require the NSDC chairman to give in writing that he will not have any external interest that would have a bearing on his role or functions in the agency. Ramadorai would be required to offer a written undertaking to that effect to keep his job.

Ramadorai’s appointment in May prompted questions over a likely conflict of interest because of his presence on the boards of various private companies. He is the vice-chairman of India’s top software exporter Tata Consultancy Services Ltd and the non-executive chairman of newly formed AirAsia India.

NSDC was formed as a public-private partnership, the industry holding a 51% stake in it and the government 49%. It aims to promote skill development in the country and create a skilled manpower of 150 million people by 2022.

The new guidelines were approved by the Prime Minister’s office on 24 June, according to an office memorandum issued by the department of economic affairs (DEA), under the finance ministry, on 17 July.

“The person appointed as chairman, on his appointment as chairman NSDC, will give a declaration, under seal and signature, that he does not, and will not, have any such financial or other interests as are likely to affect prejudicially his functions as chairman NSDC," the department of economic affairs said.

The format of the declaration has to be finalized and approved by the board of directors of the NSDC, the DEA said. Mint has a copy of the memorandum.

The memorandum was sent to all stakeholders in NSDC such as the secretaries in the ministries of small and medium enterprise, and labour.

The story was first reported by CNBC-TV 18 late Monday.

Mint could not immediately reach Ramadorai for comments. TCS said he was travelling. An NSDC spokesperson also said he was travelling and hence “unable to provide comments".

Ramadorai, in a 16 July Business Standard report, said he had informed the government about all his non-executive roles in the private sector. “The role of advisor to the PM on skill development was taken up by me after full disclosure of my roles in the private sector, as well as educational institutions. It was agreed that these associations would continue," he told the newspaper.

Ramadorai was appointed as advisor to the Prime Minister in the National Skill Development Council in February 2011 in the rank of a cabinet minister.

Planning Commission member Arun Maira was the first to raise the issue of a possible conflict of interest in Ramadorai’s appointment as NSDC chairman. He sought Prime Minister Manmohan Singh’s intervention on the appointment of people from the private sector to public positions.

“Though it is a good thing for private sector professionals to enter government, there was a need for the government to clarify detailed norms for their holding leadership positions elsewhere," said Maira, who had quit his job at Boston Consulting Group to join the Planning Commission in 2009.

A senior industry executive, who owns several private sector companies and has been associated with government agencies in the past, said there are broader issues the government needs to take care of.

“All kind of politicians are involved with a lot of private companies. Ramadorai is (an) exceptionally honest person. I don’t understand why is he being treated like that?," he said, requesting anonymity as “it is a complicated matter".

Executives Nandan Nilekani and Raghu Raman quit their jobs at Infosys Ltd and Mahindra Land Systems, respectively, to take up government assignments. Nilekani heads Unique Identification Authority of India and Raman, a Mint columnist, heads India’s intelligence database National Intelligence Grid.

A government official who did not wish to be identified said that the larger issue, which was being ignored, was whether Ramadorai’s other responsibilities—he is also the non-executive chairman of AirAsia India—will distract him from what has now become a full-time role. His reference is to the original constitution of NSDC as an advisory and its subsequent conversion to a full-fledged authority like UIDAI.

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Published: 23 Jul 2013, 11:28 PM IST
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