BHEL, GAIL for Maharatna tag

Power equipment maker BHEL and state gas utility GAIL have approached the government for grant of Maharatna status, which will give them greater financial autonomy.

“Recently, both BHEL and GAIL have forwarded their applications for the grant of the status to the Department of Public Enterprises (DPE),” an official said.

The Scrutiny Committee of the DPE would soon meet to scrutinise the proposals, he added. At present, BHEL and GAIL are Navratna PSUs.

Once a company gets the Maharatna tag, its board would not be required to take the government’s permission for investments up to Rs 5,000 crore in a joint venture project or wholly-owned subsidiary. A company qualifying for  Maharatna should have an average annual turnover of more than Rs 25,000 crore in the last three 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 three years.