Centre weighs maha navratna tag for top PSUs
New Delhi   27-Oct-2008
Blue chip public sector companies such as Gail, NTPC, ONGC, Bhel, SAIL and Indian Oil may get a super status. With the slot of navratnas getting crowded, the government is considering to classify some of them as 'maha navratna' companies based on their performance. The new classification would give more financial powers and functional autonomy to maha navratnas. It is learnt from official sources the department of public enterprises (DPE) has been asked to prepare a report in this regard, It will also make a list of additional powers to be conferred to these maha navratnas. With already 18 companies having navratna status, the coveted position has lost its sheen, an official said. Coal India is the latest addition in the list of navratnas. Recently at a conference, the minister of heavy industries and public enterprises Santosh Mohan Dev had also hinted at the move. This thinking has been there for some time. We've been periodically reviewing the performance of PSUs and large profit-making PSUs can be given the 'maha navratna' status with additional powers. Also, with 18 companies having the navratna status a need has been felt that some PSUs should be moved into a higher league with greater autonomy on both financial and management decisions," a DPE official said. As of now, a navratna company is allowed to establish financial joint ventures and wholly-owned subsidiaries in India or abroad. It is, however subject to the condition that such investment should not exceed 15% of the company's net worth and the total investment in one project should be below Rs 1,000 crore. The overall ceiling on such investment in all projects put together is 30% of the company's net worth. The boards of directors of these companies also have the power for approving mergers and acquisitions activity and only need to inform the government in case of investments abroad. The navratna status is presently subject to the condition that these PSEs shall not depend up on budgetary support or government guarantee.