After handing its incumbent CEO, S M Vaidya, a rare extension after he retired in August, the government has formed a panel to appoint a new chairman for Indian Oil Corp.

"The Appointments Committee of the Cabinet (ACC) has approved the proposal of the Ministry of Petroleum and Natural Gas for selection to the post of Chairman, Indian Oil Corporation Ltd, on immediate absorption basis, through a search-cum-selection committee as a one-time measure," according to an order issued by the government.

Mallika Srinivasan, head of the Public Enterprise Selection Board (PESB), Pankaj Jain, petroleum secretary, and former HPCL chairman M K Surana are on the committee. Surana serves as an "outside expert of eminence" on the committee.

A similar three-member committee, comprising Srinivasan, Jain, and former Indian Oil Chairman B Ashok as the outside expert, was set up last year to select ONGC chairman. The panel recommended former BPCL chief Arun Singh, who the ACC appointed ONGC chairman late last year.

According to those acquainted with the situation, the committee tasked with selecting the Indian Oil CEO will likely modify the age criterion, as it did for the ONGC CEO, and consider even retired CEOs for the role. This would keep Vaidya in the picture.

Vaidya was given a one-year contract renewal by the Cabinet Appointments Committee in August, despite the oil ministry's recommendation for a two-year extension. His re-employment is contractual, began shortly after he retired at the end of August, and is valid "till 31.08.2024, or until the appointment of a regular incumbent to the post, or until further orders, whichever is the earliest," according to a prior government directive.