|
Top performing Navratna PSUs New Delhi: The Union Cabinet on Thursday approved the introduction of “Maharatna” category for Central Public Sector Enterprises (CPSEs). CPSEs meeting the following eligibility criteria are proposed to be considered for Maharatna status: · Having Navratna status · Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations· An average annual turnover of more than Rs.25,000 crore during the last 3 years · An average annual net worth of more than Rs.15,000 crore during the last 3 years · An average annual net profit after tax of more than Rs.5,000 crore during the last 3 years · Should have significant global presence/international operations The ‘Maharatna’ status will give CPSE Board’s enhanced powers in the area of investment in joint ventures/subsidiaries and creation of below Board level posts. The Boards of Maharatna CPSEs will have powers to (a) make equity investment to establish financial joint ventures and wholly owned subsidiaries in India or abroad and (b) undertake mergers & acquisitions, in India or abroad, subject to a ceiling of 15% of the net worth of the concerned CPSE in one project, limited to an absolute ceiling of Rs.5,000 crore (Rs.1000 crore for Navratna CPSEs). The overall ceiling on such equity investments and mergers and acquisitions in all projects put together will not exceed 30% of the net worth of the concerned CPSEs. In addition, the Boards of Maharatna CPSEs will have powers to create below Board level posts up to E-9 level. The main objective of the Maharatna Scheme is to empower mega CPSEs to expand their operations and emerge as global giants. The Government had introduced the Navratna scheme, in 1977, to identify Central Public Sector Enterprises (CPSEs) that had comparative advantages and to support them in their drive to become global giants. Over the years, some of the Navratna companies have grown very big and have considerably larger operations than their peers. It was felt that these CPSEs which are at the higher end of the Navratna category and have potential to become Indian Multinational Companies (MNCs), can be recognized as a separate class, i.e. ‘Maharatna’. |
