The Cabinet is set to take a decision on conferring'Maharatna' status on some of the navratna PSUs on Wedneseday.
A Maharatna tag empowers public sector undertakings to compete with global companies.
To be upgraded, PSUs need to meet criteria such as be listed on a stock exchange and have significant global and national operations.
Also, for the past three years, these PSUs must have had an annual turnover of Rs 25,000 crore, average annual net worth of Rs 15,000 crore and average net profit of at least Rs 5,000 crore.
Maharatna PSUs will have the power to make equity investment to establish joint ventures and wholly owned arms in India and abroad and undertake mergers and acquisitions in India and abroad.
However, foreign acquisitions will be subject to a ceiling of 25% of the net worth in a project with overall limit on ceiling of Rs 5,000 crore and overall 30% of net worth.
In July this year, the department of public enterprises (DPE) had proposed the 'Maharatna' status for the top six PSUs in a draft Cabinet note.
The undertakings likely to be upgraded to Manaratnas include ONGC, IndianOil, Bhel, BSNL, NTPC Ltd and Steel Authority of India Ltd.
Comments