Key Highlights
- SAIL’s board has 18 sanctioned positions, comprising nine functional directors, seven independent directors and two government nominated members, according to the supplied report.
- Only 10 directors are currently serving, including eight functional directors, one independent director and one government nominee.
- Government nominated member Abhijit Narendra is due to retire on 30th September 2026, which would take the board’s strength to nine.
- The shortage of independent directors has raised questions over the functioning of board committees and corporate-governance compliance.
- SAIL management has sought faster appointments of vacant independent and government-nominated positions from the Ministry of Steel and PESB.
- The vacancies come as SAIL is dealing with major modernisation, investment and strategic decisions.
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Ranchi: Steel Authority of India Ltd (SAIL) is facing a shortage of directors on its board, with vacancies in key categories adding to the company’s boardroom challenges at a time when it is taking decisions on modernisation, investment and other strategic matters. According to the details provided, SAIL has 18 sanctioned board positions but only 10 are currently occupied. The number is set to fall to nine after the retirement of government nominated member Abhijit Narendra on 30the September.
Only One Independent Director Currently in Place
SAIL’s board structure provides for nine functional directors, seven independent directors and two government-nominated members. At present, eight of the nine functional director positions are occupied, while only one of the seven independent director positions is filled. One of the two government-nominated positions is also occupied. The current board includes CMD Dr A.K. Panda, Director (Personnel) K.K. Singh, Director (Mining) Manish Raj Gupta, Director (Commercial) T.S. Natarajan and the directors-in-charge of Bokaro, Bhilai, Rourkela and Durgapur steel plants. Pranav Rai is the serving independent director, while Abhijit Narendra represents the Government.
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The shortage has implications beyond the number of seats on the board. Independent directors have an important role in listed company governance, including participation in board committees. SEBI’s corporate governance framework prescribes requirements for the composition of boards and independent directors, with the applicable requirement depending on the company’s board structure. The shortage therefore creates a compliance issue that SAIL will need to address, particularly as board and committee approvals are required for major corporate decisions. The report says the company is finding it difficult to complete the required quorum and committee composition for some decisions.
SAIL Looks to Ministry for Early Appointments
SAIL management has sought the Ministry of Steel and the Public Enterprises Selection Board’s intervention to speed up appointments to vacant independent director and government nominated positions. The issue comes as the company continues to work on modernisation and large investment proposals. With the Government nominee’s retirement due on 30th September, the board’s strength is set to reduce further unless a replacement is appointed. Filling the vacancies will therefore be important not only for the board’s functioning but also for ensuring that SAIL’s governance structure remains aligned with the applicable regulatory requirements.
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