Mega PSUs ONGC, SAIL and NTPC will get greater financial and operational autonomy with the government on Thursday approving a policy
for creating a `Maharatna' category of top performing state-owned firms to enable them become global giants.
The decision to grant top performing PSUs the `Maharatna' status was taken at the meeting of the Union Cabinet. "The main objective of the Maharatna scheme is to empower mega CPSEs to expand their operations and emerge as global giants", I&B minister Ambika Soni told reporters after the meeting.
Of the 18 Navaratnas, SAIL, ONGC and NTPC met the stiff criteria set by the government, including a three-year track record of annual net profit of over Rs 5,000 crore, net worth of Rs 15,000 crore and turnover of Rs 25,000 crore, besides being listed entities in the bourses.
The coveted status empowers the boards of these firms to take investment decisions up to Rs 5,000 crore as against the present Rs 1,000 crore limit without seeking government approval.
The Maharatna firms would now be free to decide on investments up to 15% of their net worth in a project, limited to an absolute ceiling of Rs 5,000 crore.
Earlier, the Navaratna companies could invest up to Rs 1,000 crore without government approval.
"However, the overall ceiling on such equity investments and mergers and acquisitions in all projects put together will not exceed 30% of net worth of the CPSE," Soni said.