Several faltering PSUs may lose Miniratna status

Several PSUs like BSNL, HMT, Hindustan Paper and Hindustan Newsprint may lose Miniratna' status, as they have slipped on performance parameters set to retain the coveted position linked with their autonomy.

Taking a stringent view, the Department of Public Enterprises (DPE) has directed all the administrative ministries to "re-examine status of existing Miniratna public sector units [PSUs] under their control with respect to the laid-down criteria".

A Miniratna PSU should have made profit for three successive years and a positive net worth, as per the DPE norms.

A comprehensive report has been sought before Monday, from the ministries and departments which have administrative control over the PSUs.

While there are 67 Miniratnas, several of them including BSNL, Hindustan Paper Corporation and Hindustan Newsprint have run into financial difficulties and are incurring losses. They may lose the status which gives them autonomy to invest up to Rs 500 crore without seeking government approval.

"In case any of these Miniratnas does not fulfill the laid down criteria, order for divestment of its Miniratna status may be immediately issued...," the DPE directive said.

Besides, the appointment of minimum three non-official directors is one of the pre-conditions for exercise of Miniratna powers, the DPE said.

"If minimum three non-official directors are not on the boards of a Miniratna company, the proposal for appointment of requisite number of non-functional directors may be furnished," the directive said.