CIL's last chairman, PK Sengupta, retired on September 30 last year.An Indian Administrative Service (IAS) officer of the Andhra Pradesh cadre, Mr Arha was initially sanctioned a three-month tenure in the public sector giant. It is understood that he has been now given another three months by the Union coal ministry.

The uncertainty has stalled all financial decisions which have to be cleared by the chairman.

Though CIL and the Public Enterprises Selection Board started shortlisting candidates in June last year - four months ahead of Mr Sengupta's retirement, all efforts have now come to nought. The board had shortlisted two candidates for the top post.

Out of the two shortlisted candidates, the-then chairman and managing director of subsidiary Central Coalfields Ltd, Mr Balaswamy Akala, was cleared as the next chairman of Coal India. But a sudden investigation by the Central Bureau of Investigation (CBI) into some old deals under Mr Akala upset his chances.

The CBI searched Mr Akala's residences in mid-November last year, and following this, the ministry transferred Mr Akala to the Central Mine Planning & Design Institute Ltd.

The PESB had also cleared CIL's technical director, Mr NK Sharma, who is also holding charge of subsidiary Mahanadi Coalfields, as the second candidate.

But Mr Sharma is being kept waiting while the CBI investigates charges against Mr Akala.

The acting chairman's powers are similar to those of a full-time chairman, but Mr Arha has not taken up any important issues at the board level.

In fact, after he took over in mid-October last year, only one board meeting has been held, and no financial issues were tabled. The meeting was adjourned and important issues like sales policies and purchase of machinery have remained pending. Mr Arha is yet to chair a single routine meeting of the chairmen and managing directors of the eight subsidiaries. The CIL chairman usually convenes a meeting of the CMDs once every month.

The subsidiaries are also in a flux. In mid-December last year, 78 candidates were interviewed over three days for the top posts in various subsidiaries. At present, three CIL subsidiaries - Mahanadi Coalfields, Western Coalfields and Eastern Coalfields - are headless. The uncertainty could affect the government's plans to sell three profit-making subsidiaries - Western Coalfields, Northern Coalfields and South Eastern Coalfields Ltd.

At the same time, officers of CIL and the subsidiaries are against the disinvestment plan and want CIL's accounts to be unified. This will help the loss-making units. The officers say that the uncertainty at the three profit-making units could affect their future and in turn the sick ones.