Confirming his appointment, Union Minister of State for Health, N.T. Shanmugan, told Chandigarh Newsline this evening that Dr Ganguly, who has been associated with the PGI for the past 30 years, will take up his new assignment immediately.

When contacted in Delhi, Dr Ganguly refused to comment on the Health Ministry's decision without assigning any reason.

The retiring director, Dr B.K. Sharma, demits office tomorrow.

News of Dr Ganguly's appointment was received very late this evening but throughout the day, the PGI had been swept by rumours that the Health Minister might appoint a senior professor from either AIIMS or the Indian Council of Medical Research, New Delhi, as the next director. A section of the PGI faculty reacted strongly to this speculation and threatened to agitate should the Health Ministry take any such decision.

They argue that the Health Minister is not authorised to decide this appointment on his own and cite the PGI Act which clearly states that the Institute Body and only the Institute Body -- can appoint the director. The Ministry of Health can ask any medical personel to act as institute director until the regular director is appointed.

For the appointment of the PGI director, the Special Selection Committee (comprised of the Union Health Minister, the Health Secretary, vice-chancellors of three universities, and eminent scientists) has to meet.

This committee will consider biodatas and recommend names which will be sent to Ministry of Health and thereafter the recommendations of the Special Selection Committee will be considered and approved by the Institute Body.

Earlier, PGI faculty members have been most frequently mentioned as candidates for the post. Dr R.J. Dash of Department of the Endicrinology Department, with 31 years service in the PGI, is the senior-most professor of the institute and the man who has officiated as director in Dr Sharma's absence. Among the other senior PGI faculty members are urologist Dr S.K. Sharma, radiologist Dr Sudha Suri, ENT specialist Dr S.B.S. Mann, pathologist Dr A.K. Banerjee, orthopaedician Dr O.N. Nagi and cyto-pathologist Dr S. Gupta.

Meanwhile, Dr Sharma is being given a warm farewell by different blocks of the institute tomorrow.