Govt relaxes norms for according Maharatna status to CPSEs

As per the new guidelines issued by the Department of Public Enterprises (DPE), a company qualifying for the Maharatna status should have an average annual turnover of more than Rs 20,000 crore in the last three years, as against Rs 25,000 crore prescribed earlier.

Besides, a company with an average annual networth of over Rs 10,000 crore and net profit of over Rs 2,500 crore, during the last three years, will qualify for the status.

Earlier, companies required average annual net worth of over Rs 15,000 crore and net profit of more than Rs 5,000 crore for three consecutive years to be eligible.

"The criteria for grant of Maharatna status to CPSEs has been re-examined in the context of representations received from various administrative ministries/departments and the need to suitably empower mega Navratna CPSEs so that they can effectively face the challenges of competition, both domestic and foreign and further expand their operations," a DPE memorandum said.

A Maharatna PSU can invest up to Rs 5,000 crore in a joint venture project or wholly owned subsidiary without seeking government approval, while the limit for Navratna companies is Rs 1,000 crore.

The government had announced the Maharatna scheme in December 2009 to give more operational freedom to the top-performing PSUs.

At present, there are four Maharatna companies -- ONGC, Indian Oil, SAIL and NTPC and 15 Navratna companies, including CIL, BHEL, NMDC and GAIL.