Maharatna status for four PSUs

Source :PTI, May 21, 2010, 12.30am IST


NEW DELHI: Government has approved the maharatna status for NTPC, IOC, ONGC and SAIL but only the power major can enjoy the autonomy that goes with the coveted status for the PSUs.

"The competent authority has approved the grant of maharatna status IOC, NTPC, ONGC and SAIL," the department of public enterprises said in an inter-ministerial communication.

While the four blue-chip PSUs have been given the new status, only NTPC "has the requisite number of non-official directors on its board and is therefore eligible to exercise the Maharatna powers", it said.

The other three companies also met the norms set by the Cabinet on December 24, their boards do not have the adequate number of independent directors, the DPE said.

The boards will now have powers to make equity investment up to Rs 5,000 crore to set up financial JVs and wholly-owned subsidiaries in India or abroad without government approval.

SAIL, NTPC seek Maharatna status

 

BloombergUTV /PTI
Published on Thu, Mar 18, 2010 at 12:24 IST


NEW DELHI: SAIL and NTPC, two of the blue- chip PSUs,
have approached the government seeking the coveted
Maharatna status that will give them greater financial autonomy.

"We have received their applications. We will send them to the
Cabinet Secretary within 15 days," Bhaskar Chatterjee
Secretary in the Department of Public Enterprises told PTI.

He said, applications from oil PSUs--ONGC and IOC--are also expected in the next few days.

The Union Cabinet had cleared the Maharatna scheme in December 2009 and set the eligibility norms for the same.

For the Maharatna tag, companies need to have a three-year track record of annual net profit of over Rs 5,000 crore, net worth of more than Rs 15,000 crore and turnover of more than Rs 25,000 crore, besides being listed on the stock exchanges.

At present, only these four firms meet the stringent criteria.

A Maharatna tag will give the companies the power to take
investment decisions of up to Rs 5,000 crore independent of
the government against the present limit of Rs 1,000 crore,
accorded to them under the Navratna status.

Of the 158 profit-making PSUs, 18 enjoy the Navratna status while 62 are mini-Navratnas.