Promotion for PSU giants on card
The Department of Public Enterprises (DPE) has proposed to introduce a new category of ‘Maharatna’ classification for big sized, high profit Central Public Sector Enterprises (CPSEs). The new classification would grant them substantially enhanced delegated powers in investment, mergers and acquisitions etc.
The proposal is included as part of the 100 Day Agenda of the Ministry of Heavy Industries & Public Enterprises. The Navratna scheme for PSUs was introduced in 1997 to identify Central Public Sector Enterprises (CPSEs) that had comparative advantages and to support them in their drive to become global giants.
The boards of Navratna CPSEs have been entrusted with powers in the areas of investment in joint ventures/subsidiaries, human resources management, mergers & acquisitions, approval of foreign tours of directors etc. Presently there are 18 such Navratna CPSEs in the country.
As per the current criteria, the Navratna status are size neutral. However, over the years, some of the Navratna companies have grown very big and have been requesting for greater delegation of powers so as to help them further increase their operations, particularly in the global markets. The new category of ‘Maharatna’ is specifically intended with this end in view. The boards of Maharatna CPSEs will be hence granted higher operational powers.
The introduction of Mahratana category of CPSEs is expected to enable the CPSEs to substantially expand their operations domestically as well as globally. The process for the introduction of Maharatna category of CPSEs has already been initiated and is expected to be completed within next three months.
The Agenda is drawn up by the Ministry of Heavy Industries & Public Enterprises reflects its commitment to undertake concrete and significant action with a view to catering to revival and restructuring of PSUs, the long term energy security of the country, and boosting the auto and capital Goods sectors of the country.