North Eastern Electric Power Corporation (Neepco) granted 'Miniratna – Category I' status
President Pranab Mukherjee conferred the status of ‘Miniratna – Category 1’ on the North Eastern Electric Power Corporation (Neepco).
Benefit of “Miniratna Category – I” for Neepco:
Neepco was earlier a schedule ‘A’ corporation and with the elevation of its status to ‘Miniratna – Category 1’, Neepco will be able to make certain important investment decisions upto Rs 500 Crores or equal to their net worth, whichever is lower, on its own without seeking approval from the Union Power Ministry.
A key role has been played by Neepco in the power sector of the NE region and has been contributing to almost 50% of the power requirement of the NE.
Miniratna Status
Category I:
- Criteria: PSEs (Pubic Sector Enterprises) which have been making profits continuously for the last 3 years or earned a net profit of Rs. 30 crore or more in one of the 3 years.
- Benefits granted: Granted certain autonomy viz. incurring capital expenditure without government approval up to Rs. 500 crore or equal to their net worth, whichever is lower
Category II
- Criteria: PSEs which have been making profits for the last 3 years continuously and having a positive net worth.
- Benefits granted: Autonomy of incurring the capital expenditure without government approval up to Rs. 300 crore or up to 50% of their net worth whichever is lower.
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Month: Current Affairs - April, 2013