Maharatna status to help SAIL expand globally: Roongta

State-owned SAIL, which is eyeing partnerships with global firms like Posco, today said that the Maharatna status will help it expand operations worldwide.

"This decision of the government will greatly strengthen our resolve and enhance SAIL's capability in the global context," SAIL chairman S K Roongta told PTI.

The government had, last week, approved the granting of the coveted Maharatna status to the country's largest steelmaker. However, the company would be given Maharatna powers only after it inducts a requisite number of non-official directors on its board.

As and when Maharatna powers are granted to SAIL, it would have the power to make equity investments up to Rs 5,000 crore to set up financial joint ventures and wholly-owned subsidiaries in India or abroad without governmental approval.

The country's largest steelmaker is currently undertaking a Rs 70,000-crore expansion project to enhance its annual production capacity to 23 million tonnes, from the current 14 million tonnes. Besides capacity augmentation, it is also in talks with Posco to jointly set up steel plants at a cost of Rs 15,000 crore in the country.
    
The SAIL board, at present, comprises 12 officials with two independent directors. According to sources, the SAIL board -- after trimming -- will require seven non-official directors, and is short of five. The steelmaker has started the process of filling the vacancies.
    
"The board is set to be trimmed further, and the file for the same has gone to the appointments committee of the Cabinet. The SAIL board will be restructured after the apex committee's approval," a senior SAIL official said.
    
As per Sebi guidelines, if the chairman of the board is an executive director, at least 50 per cent of the board should consist of independent directors.
    
Last Thursday, the government had approved the Maharatna status for NTPC, IOC, ONGC and SAIL. But only NTPC can currently enjoy the autonomy that comes with the coveted status as it has the requisite number of non-official or independent directors on its board.
    
The firms fulfilled all the other criteria, that is, three-year track record of annual net profit of over Rs 5,000 crore, net worth of more than Rs 15,000 crore and turnover of more than Rs 25,000 crore, besides listing on stock exchanges.
    
Of the 158 profit-making PSUs, 18 enjoy the Navratna status while 62 are mini-Navratnas. In all, there are 246 PSUs in the central sector.