The move is being broadly seen as one that will ultimately lead to Kohli withdrawing himself from Tata Consultancy Services (TCS) as well. Having crossed 75, the age limit set for Tata group non-executive directors, Kohli had stepped down from the Tata Sons board earlier this fiscal along with five other group stalwarts.

Kohli's move will also allow Kavarana, already a director on the Tata Sons board, to play a bigger role within the Tata group. Group chairman Ratan Tata has initiated a move so that the role played by younger "brains" of the group were not restricted to their respective group companies.

Kohli, known more for his association with TCS, has turned the infotech division of Tata Sons into India's largest software company with exports of over Rs 1,500 crore in 1998-99. Inthe '70s and early '80s, he set the division's sights on software when hardware was the buzzword.

Kohli took over as Tata Infotech chairman three years back, when the Tatas bought out its partner in the venture, Unisys. Under Kohli, both TCS and Tata Infotech have grown at a phenomenal rate when most of the group's blue-chip companies were bearing the brunt of recession.

Kavarana will inherit the Rs 392-crore Tata Infotech which has emerged as a strong player in systems integration within India, and as a software services and solutions provider in its overseas markets.

Its manufacturing division is among the leading players in micro processor-based products. More recently, the company set up a computer education division - Tulec.

Tata Infotech's net profit grew from Rs 34 crore to Rs 46 crore in 1998-99, paid a dividend of 70 per cent and bonus shares in the ratio of 1:2 to its shareholders.

As part of the group's plan to allow younger directors play a greater role, Ishaat Hussain of Tata Steel, hasalready moved to Tata Sons and is expected to take over from NA Soonawala, the present Tata Sons finance director, when he gives up his executive position within the next two years. Tata group directors can continue only in a non-executive capacity after they cross 65 years of age.

While Hussain has also been made vice-chairman of engineering Voltas, a newcomer to the group, R Gopalakrishnan, the former vice-chairman of Hindustan Lever, has been made been made vice chairman of a few Tata companies including Tata Chemicals.