Brahmaputra Cracker and Polymer Limited (BCPL), which is executing the Rs 5,460-crore gas cracker project in Assam, wants its existing board to continue till the mega project is commissioned.

In a letter to the Department of Chemicals and Petrochemicals (DCPC), BCPL said, ?The Board is of the unanimous opinion that the existing compositing of BCPL board should be continued till the project is commissioned.?

BCPL?s suggestion was in response to an advice by Department of Public Enterprises (DPE) to reconstitute its board according to the department?s guidelines on corporate governance for CPSEs.

DPE had advised BCPL to restrict the number of nominee directors in the company to three.

The present structure of the board of BCPL has been formed as per the joint venture agreement among GAIL, OIL, NRL and the government of Assam which provides that it shall initially comprise 12 directors out of which eight would represent promoters GAIL (4), government of Assam (2), NRL (1) and OIL (1) while managing director and director (finance) shall be the ninth and tenth directors. Two directors each from Ministry of Petroleum and Natural Gas and DCPC will represent the government.

However, the articles of association entitled to nominate a maximum of 11 directors ? GAIL (7), government of Assam (2), NRL (1) and OIL (1) as their representative on the board of the company.

In order to comply with the DPE?s guidelines on corporate governance for CPSEs, DCPC mooted a proposal for reconstitution of the board of BCPL as per the following structure:

1. Functional directors (2): managing directors (2) and director finance.
2. Nominee directors (3): one each from the three official agencies ? GAIL India Ltd (major equity holder) represented by its CMD, who will also be the chairman of BCPL, the administrative ministry (i.e., DCPC) and the government of Assam.
3. Independent directors (2): two independent directors to be appointed in consultation with the Department of Public Enterprises.