Govt. accords ‘Maharatna’ status to Power Grid Corp, HPCL

Government of India has accorded ‘Maharatna’ status to public sector undertaking’s (PSU’s) Hindustan Petroleum Corporation Limited (HPCL) and Power Grid Corporation. Two separate orders to this effect were issued by Department of Public Enterprises, under Union Ministry of Heavy Industry and Public Enterprises.

Key Highlights

The grant of Maharatna status to state-owned enterprises Hindustan Petroleum and Power Grid Corporation will impart greater operational and financial autonomy thus enhancing powers to their Boards to take financial decisions.

Boards of Maharatna PSU can make equity investments to undertake financial joint ventures (JV) and wholly owned subsidiaries and undertake mergers and acquisitions (M&A) in India as well as abroad. This is however subjected to a ceiling of 15% of net worth of concerned CPSE, limited to Rs 5,000 crore in one project.

The Boards can also structure and implement schemes relating to personnel as well as human resource management and training. They can also enter into technology JVs or other strategic alliances, among others.

Holding companies of a ‘Maharatna’ PSU are also empowered to float fresh equity, transfer assets, divest shareholding in subsidiaries, but are subjected to condition that the delegation will only be in respect of subsidiaries set up by holding company.

 Hindustan Petroleum Corporation Limited (HPCL) & Power Grid Corporation of India

It is an Indian oil and natural gas company which is headquartered at Mumbai, Maharashtra. It was incorporated in 1974 after the takeover and merger of erstwhile Esso Standard and Lube India. The merger was done through the Esso (Acquisition of Undertaking in India) Act passed by Parliament.

Power Grid Corporation of India Limited is state-owned Maharatna company. It is India’s largest electric power transmission utility firm engaged mainly in Transmission of Power. It is a listed company since 2007 and is headquartered in Gurugram, Haryana.

Month: Current Affairs - October, 2019