Business Standard

Lavasa may be next defence secy

- ARUP ROYCHOUDHU­RY

Finance Secretary Ashok Lavasa has emerged as a likely contender for the post of defence secretary with incumbent G Mohan Kumar completing his tenure this month. This, coupled with Economic Affairs Secretary Shaktikant­a Das’ retirement, again in late May, will trigger a bureaucrat­ic reshuffle. As part of the top-level changes, Revenue Secretary Hasmukh Adhia could become the finance secretary, sources indicated.

Lavasa, a 1980 batch Indian Administra­tive Service officer, is scheduled to retire in October. If posted as defence secretary, his tenure could be extended by two years. Lavasa has been expenditur­e secretary since April 2016, and was officially named finance secretary (the term given to the seniormost of secretarie­s handling the economy) two months later. Senior officials said there have been discussion­s in the highest echelons on moving Lavasa to defence.

The secretarie­s of home and defence can be given a two-year extension beyond their scheduled retirement date. Mohan Kumar was made defence secretary in May 2015 for two years, on the day of his retirement. Rajiv Mehrishi, home secretary, was also given the post on the day he was to retire as finance secretary.

Lavasa has overseen merger of the rail Budget into the Union Budget, abolition of the Five-Year plan process and advancing of the Budget date from February 28 to February 1. He also led a panel to examine recommenda­tions of the 7th Pay Commission on allowances for the central government’s employees.

Das’ tenure as economic affairs secretary ends on May 30. Originally to retire in February, he was given a three-month extension. The 2017-18 Budget was the eighth Budget whose making he was part of.

If the buzz in bureaucrat­ic circles is to be believed, some of the names doing the rounds for Das’ replacemen­t are urban developmen­t secretary Rajiv Gauba (1982 batch), World Bank executive director Subhash Garg (1983 batch), and skill developmen­t secretary K P Krishnan (1983 batch). Once Das retires, and if Lavasa becomes defence secretary, Adhia could be the finance secretary. A 1981 batch officer, he will oversee implementa­tion of the nationwide goods and service tax, scheduled to roll out on July 1.

Adhia’s tenure as the seniormost revenue department official has also been marked by the Narendra Modi government’s repeated and far-reaching effort to tackle undisclose­d income, including a foreign asset declaratio­n scheme, a domestic black money scheme, and the Pradhan Mantri Garib Kalyan Yojana.

Lavasa, Adhia and Das are said to be among the few senior bureaucrat­s outside the Prime Minister’s Office who were involved in the planning of demonetisa­tion.

The other two secretarie­s in the finance ministry are Anjuly Chib Duggal (financial services, 1981 batch) and Neeraj Gupta (investment and public asset management, 1982 batch).

Lavasa, Adhia and Das are said to be among the few senior bureaucrat­s outside the Prime Minister’s Office who were involved in the planning of demonetisa­tion

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