New Delhi: The government is examining a significant restructuring proposal for the board of Indian Oil Corporation (IOC), which may lead to the elimination of up to three whole-time director positions, according to sources with direct knowledge of the development. The restructuring exercise is part of a broader effort to streamline leadership roles and optimise operational efficiency at India’s largest oil marketing company.
Proposal to Cut Director Positions
According to sources, the latest plan under consideration proposes the removal of the posts of Director (R&D), Director (Planning and Business Development), and Director (Pipelines).
A senior official familiar with the matter said the government is evaluating a board structure consisting of only four whole-time directors — Finance, Marketing, Refineries, and HR — in addition to the Chairman, government nominees, and independent directors.
Currently, IOC’s board includes six whole-time directors, two government-nominated directors, and three independent directors.
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Past Proposals Faced Resistance
This is not the first time the government has explored restructuring at IOC:
- In 2023, a plan to abolish the Director (R&D) post was scrapped after opposition, and Alok Sharma was appointed to the role.
- In mid-2025, a proposal to eliminate the Director (Pipelines) position faced strong resistance from trade unions and officers’ associations, who argued that oversight of IOC’s 20,000+ km pipeline network is critical for national energy logistics.
The Director (Pipelines) post has remained vacant since June 2025, with Director (Refineries) Arvind Kumar currently holding additional charge.
PESB Blocks HR Director Post Removal
A separate proposal to abolish the Director (HR) position was rejected by the Public Enterprises Selection Board (PESB). The PESB argued that every central PSU requires a dedicated HR director and advised IOC not to disturb the organisation’s structural integrity.
Despite PESB’s stance, the future of the HR role has resurfaced in fresh deliberations.
Multiple Restructuring Models Being Weighed
Sources indicate that several models are under government examination:
- Merging Director (Pipelines) with Director (Refineries)
- Merging Director (Planning & Business Development), Director (R&D), and Director (HR) into a single high-level post titled Director (Corporate Strategy)
- Retaining four approved director roles and eliminating the remaining three
Interviews for the advertised posts of Director (R&D) and Director (Pipelines) — for which applications closed in August–September 2025 — have not been conducted, indicating uncertainty over the final structure.
Officials emphasised that clarity will emerge only once the Prime Minister’s Office (PMO) approves the final blueprint.
Uncertainty Raises Concerns Within IOC
The ongoing deliberations have created anxiety within the organisation.
A source raised a notable concern:
“If they abolish the Director (HR) role, what happens to the incumbent who still has five years left in her tenure?” referring to current Director HR, Rashmi Govil.
Another senior official pointed out the possible impact on Suman Kumar, Director (Planning & Business Development), whose tenure could be curtailed if the proposal for a four-director board is approved.
About Indian Oil Corporation (IOC)
Indian Oil Corporation Limited, a Maharatna Public Sector Undertaking, is India’s largest oil refiner and fuel retailer. With an extensive network of refineries, pipelines, and fuel stations, IOC plays a critical role in ensuring national energy security. It is also a key player in petrochemicals, R&D, green energy, and emerging technologies supporting India’s energy transition.
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