Online BusinessCabinet likely to discuss Maharatna status tomorrow
The Cabinet is likely to consider tomorrow granting the coveted "Maharatna" status to select profit-making Central Public Sector Enterprises (CPSEs), including ONGC, SAIL, BSNL, NTPC and CIL, that will offer them greater functional autonomy.
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"The proposal is listed for the Cabinet meeting tomorrow," a government official told PTI.
Last week, the Department of Public Enterprises had sent the proposal to the Cabinet Secretariat for clearance.
PSUs like ONGC, SAIL, BSNL, NTPC and CIL are expected to be accorded this status.
Under the new "Maharatna" status, PSUs will get more autonomy in decision-making, like investment of up to Rs 5,000 crore could be made without government approval.
The coveted Maharatna tag would also give the CPSEs greater autonomy to forge joint ventures, float overseas arms and the freedom to decide on mergers and acquisitions of a particular size.
However, only a few CPSEs may qualify for the strict criteria under consideration. These may include Rs 30,000 crore or more turnover and at least Rs 5,000 crore net profit in the past three years, besides an average networth of Rs 15,000 crore.
At present, the boards of 18 Navaratna CPSEs, including ONGC, BHEL, CIL, GAIL and NTPC, can decide on their own investments up to Rs 1,000 crore, beyond which they need the approval either from their administrative ministries or the Cabinet.
Besides financial autonomy, these Navratna CPSEs also enjoy other functional freedom in respect of recruitment, promotion, and service conditions employees.