Top state-run firms to get Maha Ratna status

The government proposes to award Maha Ratna status to state-owned companies for greater functional autonomy to make higher investments,
form joint ventures and expand capacity, Heavy Industries and Public Enterprises Minister Vilasrao Deshmukh said here Tuesday.

"My ministry will seek cabinet approval for elevating some of the Nav Ratna companies owned by the government to the Maha Ratna status provided their net profit is Rs.5,000 crore for three consecutive years," Deshumukh told reporters on the margins of an official function.

Profit-making firms such as Bharat Heavy Electricals Ltd (BHEL), National Thermal Power Corporation (NTPC) and Oil & Natural Gas Commission (ONGC) qualify for the Maha Ratna status.

"We are working on the details of the new scheme in consultation with other ministries like finance and law. Once the cabinet approves the scheme, a committee will be set up to identify, vet and select the Nav Ratnas that can be elevated to Maha Ratna status," Deshmukh said after dedicating to the nation BHEL's solar photovoltaic production facility on the outskirts of the city.

With state-run oil firms coming under the petroleum ministry, the new status will not be decided by the heavy industries ministry.

Clarifying that the proposed new status would not stall disinvesting the government stake in profit-making firms, Deshmukh said barring the listed state-run firms, other state-owned firms were not in the disinvestment programme.

"At any cost, disinvestment will be up to 49 percent so as to ensure the government's majority holding will remain intact at 51 percent. There is no proposal before the ministry for disinvesting any stake in BHEL," Deshmukh asserted.

ref:
http://economictimes.indiatimes.com/News/Economy/Policy/Top-state-run-firms-to-get-Maha-Ratna-status/articleshow/4960770.cms