Bharat Petroleum set to get Maharatna status

State-run oil marketing company Bharat Petroleum Corporation (BPCL) is all set to become a Maharatna company. Presently it is having Navratna status.
The decision to elevate BPCL to Maharatna status was taken by panel headed by Cabinet secretary and an announcement to this effect will be made soon.
BPCL will be eight Central Public Sector Enterprises (CPSE) to get coveted Maharatna status. The status will enable BPCL Board to get enhanced powers which will help in expansion of its operations, both in India and abroad.

Navratna scheme

The Government had introduced Navratna scheme, in 1997, to identify CPSEs that had comparative advantages and to support them in their drive to become global giants. The Boards of Navratna CPSEs have been delegated powers in following areas: Capital expenditure, Investment in joint ventures / subsidiaries, Mergers & acquisition and Human resources management, etc.

Maharatna companies

The “Maharatna” category for CPSEs was introduced in 2009 with objective to empower mega CPSEs to expand their operations and emerge as global giants or become Indian Multinational Companies (MNCs),
At present, there are seven Maharatna companies — Bharat Heavy Electricals (BHEL), Coal India (CIL), GAIL (India), Indian Oil Corporation, NTPC, Oil and Natural Gas Corporation (ONGC) and Steel Authority of India (SAIL). Maharatna and Navaratna state-owned units operate in strategic fields such as coal, petroleum, steel, heavy engineering, telecommunications, power supply and transportation services.

Criteria for Maharatna status

Under government rules, Central Public Sector Enterprises (CPSEs) must fulfill following criteria for grant of Maharatna status.

• Having Navratna status.
• Average annual turnover of more than Rs. 25,000 crore, during last 3 years.
• Average annual net worth of more than Rs. 15,000 crore, during last 3 years.
• Average annual net profit after tax of more than Rs. 5,000 crore, during last 3 years.
• Should have significant global presence and international operations.
• Listed on Indian stock exchange with minimum prescribed public shareholding limit under SEBI regulations.

Month: Current Affairs - September, 2017