This is happening at a time when the other five navratnas -- SAIL, IPCL, VSNL, NTPC and BHEL -- have got their additional directors in place and can now enjoy the perks that go with the new status. This is taking an inordinately long time for the oil companies which, in fact, have a tougher task cut out for them what with deregulation having kicked off in the petroleum sector.

The search committee appointed by the government more than a year ago was asked to suggest appropriate names for the boards of these companies. The report was dutifully handed over to the ministries concerned but the delays began with a change of government and, consequently,top officials at the centre.

Experts also say that the navratna process should have kicked off with PSU chiefs being involved in suggesting names. "They could have at least shot off a dozen prospective candidates who, in their opinion, would have helped the organisation grow and identify its priorities better," experts say.

Take the case of ONGC. The upstream major has only recently indicated its interest in getting into a whole lot of sectors like petrochemicals, refining, power etc as part of its endeavour to enter the downstream sector. The top brass could have been consulted in recommending some appropriate persons who would have fitted the bill and be part of the process of change. Observers say that this should have been also been the case with the three refining companies who are exploring new frontiers in the oil sector.

The other reason being attributed for the delay in constituting the new board is that some of the appointees have rejected their offers. This news, however, is unconfirmedthough it is more than probable that there is an element of truth in it. After all, in the cases of those who are already holding top positions in their own private companies, it would be difficult to also become a part-time director of a PSU.

The million dollar question is how long will the oil companies have to wait before they get the benefits of being navratnas. So far, it is a tag that has been confined to the record books and has only led to the PSUs working with "one hand tied behind their backs." The timing could not have been worse because greater flexibility would have helped them to cope better with the harsh realities of a deregulated environment.

The navratna status would allow these PSUs to invest up to Rs 200 crore in any one project, five per cent of their networth in any single project and 15 per cent in all joint ventures/subsidaries put together. While normally the investment would be done directly by the parent PSU, in cases where it proposes to invest through a subsidiary into anotherjoint venture and also provides additional capital for the purpose, the stipulation mentioned would apply.

The boards of the navratnas would also be allowed to:

* incur capital expenditure on purchase of new items or for replacement without any monetary ceiling;

* enter into technology joint ventures or strategic alliances;

* effect organisational restructuring including establishment of profit centres, opening offices here and abroad etc;

* create and wind up all posts including those of non-board level directors (functional directors who may have the same pay scales as those of their board-level counterparts but are not board members);

* raise debt from the domestic capital markets and borrow from the international market after getting approval from the RBI or department of economic affairs.

None of the navratnas would depend on budgetary support or government guarantees. The resources for implementing programmes should come from their internal resources or other sources. Likwise, proposalspertaining to capital expenditure or which involve higher investment should be prepared with the help of consultants and appraised by financial institutions.