The new CMDs of telecom PSUs BSNL and MTNL will be hired on a contract basis with a fixed term of three years, as per the terms and conditions of their appointment, and they will be eligible for the same salary and perks as the head honchos of schedule-A PSUs.

The government has formed a six-member search-cum-selection committee, headed by the Cabinet Secretary, to scout for new CMDs for the two telecom PSUs.

According to sources in the know, it has been agreed that their appointment should be made for a fixed tenure of three years, extendable by another three years, based on performance evaluation by an external group.

Other members of the search-cum-selection panel are Secretary (Personnel) Shantanu Consul, Telecom Secretary P J Thomas, IIT Chennai professor Ashok Jhunjunwala, IIM Ahmedabad professor Sameer Barua and IISC Bangalore professor N Balakrishnan.

BSNL's incumbent CMD Kuldip Goyal is retiring on July 31, while the post of CMD at MTNL is currently being administered by Director (Technical) Kuldeep Singh as an additional charge.

The deviation in the selection process has been done in the case of the two telecom PSUs as part of restructuring to make them financially viable, as recommended by the Sam Pitroda panel.

Sources said the six-member committee has been given the mandate to look for a suitable candidate either from within the organisation or from the private sector.

Asked whether the government is prepared to match the salary and perks of the corporate sector, officials declined to comment, saying these details are being worked out.

As per the terms and conditions, the CMD would be offered a salary and perks as per Schedule-A PSUs, along with performance-related pay and other facilities like free accommodation and a car.

This roughly works out to a package of about Rs 45 lakh per annum with an entry-level basic pay of Rs 80,000. The scale ranges up to Rs 1,25,000.

Sources in-the-know said these were discussed between the Prime Minister's Office and the Department of Telecom before constituting the panel.

The panel was formed on the request of the DoT.