BHEL, GAIL become Maharatna
Two PSUs BHEL and GAIL have been conferred with the Maharatna status by the government. This will provide them greater financial and functional autonomy and also ensure better valuation for their shares.
A Maharatna firm can take investment decision of up to Rs 5,000 crore without going to the government.
For Navratna firms, this limit is Rs 1,000 crore.
However, lack of requisite number of non-official directors on their board makes them ineligible to exercise the Maharatna powers. BHEL is short of 6 non-official directors, while GAIL is short of 4 independent directors.
As per Department of Public Enterprises the Key qualifications for Maharatna status:
- The Company should have an average annual turnover of more than Rs 25,000 crore in the last 3 years.
- The PSU must have a net worth of over Rs 15,000 crore and net profit of more than Rs 5,000 crore during the last 3 years.
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Month: Current Affairs - February, 2013