Government intends to allow private sector to apply for the position of TRAI chairperson

The central government’s watchdog for the telecom industry in India, the Telecom Regulatory Authority of India, or TRAI, is poised to get its next leader from the private sector. The Centre may change the regulations to nominate a new TRAI chairperson from the private sector, according to a report by the Indian Express. This would imply that Section 4 of the TRAI Act (1997) would be changed. This specific section grants the federal government the authority to choose the TRAI chairman, who must have expertise in the field of telecommunications among other things. TRAI has not yet encountered any appointments from the private sector.

Eligibility for the post-

“There is a proposal that a person who has never worked in the government can be appointed as the chairperson of TRAI if they have at least 30 years of professional experience at a senior level, such as a board member or chief executive officer,” the official spoke on terms of anonymity since the discussions are currently confidential.

This would entail, in essence, changing Section 4 of the TRAI Act, 1997, which grants the Centre the authority to appoint the chairperson and members of the regulatory body who have “special knowledge of, and professional experience in, telecommunication, industry, finance, accountancy, law, management, or consumer affairs.”

Since the fundamental eligibility requirements were never established, the government official claimed there haven’t been any appointments from the private sector for the position thus far. Additionally, the modifications under consideration show how TRAI has changed over the years as a regulator and that it could now function effectively under a private sector employee, according to insiders.

A TRAI member must have held the position of Secretary or Additional Secretary to the Government of India, or any equivalent position in the central or state government, for at least three years in order to qualify under the current regulations. But there are no rules outlined for the position of chairperson.

“While technically, the chairperson could have been appointed from the private sector, the government had so far stayed away from appointing such an individual due to obvious concerns of conflict of interest. But the changes being considered now signal the changing mindset of the Centre towards opening up key regulatory posts for individuals from the private sector,” the official stated.

“Naturally, if the amendments go through, there will be checks and balances in place to ensure that if someone from the private sector is chosen, there is no scope of any conflict of interest after their appointment,” added the official.

The present TRAI chairman-

P D Vaghela, the present TRAI chairman, is an IAS officer from Gujarat’s 1986 batch who previously served as the department’s secretary. From 2014 until 2015, R S Sharma, an IAS officer from the Jharkhand cadre from a 1978 batch, served as the IT Secretary.

S. S. Sodhi, the first chairman of the TRAI, served as chief justice of the Allahabad High Court from 1997 to 2000. Former head of the State Bank of India, M. S. Verma served as the organization’s second chairwoman before stepping down in 2003. They are now the only two non-IAS officers who have held the position of TRAI chairperson.

Other centralised institutions controlled by individuals from the private sector-

The idea is consistent with the government’s recent decisions to choose members of the private sector to lead important regulatory organisations.

SEBI– More than 30 years after the market regulator received statutory authority, Madhabi Puri Buch earlier this year became the first private sector executive to lead the Securities and Exchange Board of India (SEBI).

The Digital Personal Data Protection Act, 2023, which was recently announced by the government, will make the Data Protection Board of India the primary adjudicator and enforcer of privacy laws. According to the Act, the chairperson of the board may be chosen from within the private sector if they have relevant experience, among other things, in the areas of data governance, the administration or implementation of social or consumer protection laws, and dispute resolution.

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