4 PSUs get Maharatna status

Four of the government’s major listed companies — Oil and Natural Gas Corporation, Indian Oil Corporation, Steel Authority of India and NTPC — were formally conferred the e Maharatna status today.

This empowers them to form financial joint ventures and wholly-owned subsidiaries, and undertake mergers and acquisitions, without government approval for up to Rs 5,000 crore in one project or 15 per cent of their net worth. Their board of directors may take such a decision.

Till now, they had the Navratna status. This allowed them to take such decisions up to Rs 1,000 crore only. The overall ceiling on such investment in all projects put together is 30 per cent of the net worth of the company.

According to the criteria, Maharatna status may be granted to listed Navaratna central public sector companies with an average annual turnover of more than Rs 25,000 crore, net profit after tax of Rs 5,000 crore and a net worth of Rs 15,000 crore during the past three years.