The government on Wednesday accorded 'Maharatna' status to state-owned Hindustan Petroleum and Power Grid Corporation, thus giving them greater operational and financial autonomy.
Two separate orders to this effect were issued by the Department of Public Enterprises, under the Ministry of Heavy Industry and Public Enterprises.
The grant of Maharatna status to the PSUs will impart enhanced powers to their Boards to take financial decisions.
The Boards of Maharatna central public sector enterprises (CPSEs) can make equity investments to undertake financial joint ventures and wholly owned subsidiaries and undertake mergers and acquisitions in India and abroad, subject to a ceiling of 15 per cent of he net worth of the concerned CPSE, limited to Rs 5,000 crore in one project.
The Boards can also structure and implement schemes relating to personnel and human resource management and training. They can also enter into technology joint ventures or other strategic alliances, among others.
The holding companies of a 'Maharatna' PSU are also empowered to transfer assets, float fresh equity and divest shareholding in subsidiaries, subject to the condition that the delegation will only be in respect of the subsidiaries set up by the holding company.
HPCL was incorporated in 1974 after the takeover and merger of erstwhile Esso Standard and Lube India through the Esso (Acquisition of Undertaking in India) Act passed by Parliament.
Power Grid Corporation of India Limited is India's largest electric power transmission utility firm. It is a listed company since 2007.