Another significant insertion which has been kept under wraps is that Jagdish Khattar - appointed joint managing director from June 9, 1998 - will take over as the second managing director from July 1, 1999. Both these clauses effectively clip the wings of present managing director and government nominee RSSLN Bhaskarudu, even though he will continue in the position till December 31, 1999. In other words, Bhaskarudu's powers are likely to be diluted further with Khattar becoming the second managing director by mid-1999.

Government sources disclosed that clause 6.3 of the MoU signed between the two parties says: "The experience and expertise of Suzuki shall be recognised and respected with respect to the technology and management ofMaruti, which includes important decisions on day-to-day management as well as decisions on management policies". They pointed out that "management policies" include almost every affair of the company -- finance, marketing, production and human resources. Clause 5.4 and 5.7 of the earlier agreement (signed in 1992) spelt out concurrence of Suzuki on decisions of capital investment, personnel, technology and new models.

The fresh MoU has also laid down the members of the two sub-committees to be set up for purchase and marketing. The sub-committee for purchase is headed by the chairman (or his representative), MD, the first joint managing director (JMD) -- currently T Kobayashi, the second JMD and director finance. Besides the chairman, the marketing sub-committee includes MD, the second JMD, director export -- K Senga and director (technical).

Significantly, the MoU says: "Other committees may be formed by the board for other areas, if required for better management and shall be designated assub-committees." The decisions taken by both the committees are expected to be tipped in SMC's favour as Suzuki nominees would have a majority representation. MUL's board is meeting on Monday to adopt the accounts for the previous fiscal and discuss capital expenditure and revenue for the year. Bhaskarudu, who had a meeting with industry minister Sikander Bakht recently, is understood to have expressed his disappointment on the deal. Details of what transpired in the meeting are not known.

The fresh deal brokered between the BJP government and Suzuki Motor Corporation of Japan after a long impasse has raised a fresh storm, with the minister being accused by parliamentarians of having "sacrificed" national interests. The minister has countered the charge by saying that the deal has been guided by "economic diplomacy".