While the inclusions on the PSU boards are really of little relevance given that they have always had Government representatives, the move to induct these officers to Petronet LNG and Petronet India could prove counter-productive. The companies have been entrusted with key responsibilities in infrastructure building and were, therefore, granted the status of private companies to expedite decision-making.

Whether this flexibility in their functioning can continue now remains to be seen as experts feel that their daily operations will now be at par with PSUs. "It is now more than certain that both Petronet LNG and Petronet India will end up facing the same problems of red tapism and delays associated with the PSUs," theysay.

To elaborate on the specific changes, the ministry is believed to have recommended joint secretary (refineries), Shivraj Singh, as director on the board of Petronet India and deputy secretary (natural gas), CL Bashal as the Government representative on Petronet LNG. As for the oil companies, additional secretary, Naresh Narad will replace Devi Dayal on the boards of IOC, HPCL, BPCL and IBP.

Acknowledging the need for a senior finance representative on the board of ONGC, the ministry has suggested the induction of a joint secretary and financial advisor. This will mean his presence on the boards of three companies -- IOC, GAIL and ONGC. Deputy secretary (finance), Mohit Sinha is believed to be the Government nominee for Madras Refineries and Bongaigaon Refinery and Petrochemicals.

ONGC Videsh, the overseas arm of ONGC, will also have a Government representative who is tipped to be director (exploration and conservation) AR Sihag. The three-million-tonne Numaligarh Refinery, scheduled to becommissioned in Assam shortly, will have on its board deputy secretary (distribution) S Velumani who will also be part of the board of Lubrizol India.

The grapevine has it that there is a general feeling of despondency as regards the Government nominees on Petronet LNG and Petronet India. Both companies have directors from oil PSUs as also the private sector. Their equity structure has been so planned to ensure that there is a level playing field for Government companies and private players while attempting to introduce greater professionalism through induction of strategic investors.

For instance, Petronet LNG is a consortium of IOC, BPCL, ONGC and GAIL where the combined equity holding is 50 per cent. The remaining will be offered to strategic and financial investors both from here and abroad.

Likewise, IOC, BPCL, HPCL and IBP, the stand-alone oil marketing company, account for 50 per cent of Petronet India's holding. The balance is held by Reliance Petroleum, Essar Oil, State Bank of India, ICICI andthe Infrastructure Leasing & Financial Services. Like Petronet LNG, the board will comprise a variety of industry representatives to contribute to the overall think-tank. While implementing these changes, the petroleum ministry has worked on the principle that the number of Government directors on each company should be limited to two (and not three as earlier) with the second nominee preferably being a finance representative. The number of directorships by an officer also would not exceed two. While acknowledging the rationale that officers above the rank of directors should be appointed to the boards, the ministry has nevertheless indicated that this may be difficult given the shortage of officers. Hence, senior deputy secretaries on the verge of promotion to directors could fill this slot as it will also be good for them professionally.