Govt circulates Cabinet note for Maharatna scheme

The government is planning to accord the "Maharatna" tag to profit-making public sector companies providing more operational and financial autonomy, the Rajya Sabha was informed today.

"The draft Cabinet note in this (according Maharatna tag to CPSEs) regard has been circulated to the concerned administrative ministries/departments for their comments," Ministry of State for Heavy Industry and Public Enterprises Arun Yadav said in a written reply.

The introduction of maharatna scheme is expected to help the larger navaratna central public sector enterprises (CPSEs) to expand their operations in both domestic as well as global markets, Yadav said.

The scheme envisages delegation of enhanced financial powers to the boards of maharatna CPSEs as compared to those available to navaratna companies, he said.

The new tag would give the public sector units greater autonomy to forge joint ventures, float overseas companies and the freedom to decide on mergers and acquisitions of a particular size.

Maharatna firms would be allowed to make investment decisions of up to Rs 5,000 crore without having to go to the government for approval.

In an another reply, Yadav said that during 2006-07 to 2008-09, two CPSEs - Bharat Ophthalmic Glass and Bharat Yantra Nigam have been closed.

"Decision for closure/revival of a CPSE is taken by the concerned administrative ministry," he added.