BHEL and GAIL awarded the coveted Maharatna Status

The government on Feb 1, 2013 granted Maharatna status to BHEL and GAIL, a development which will provide them greater financial and functional autonomy and also ensure better valuation for shares of the two PSUs.

(As on February, 2013)

Maharatna CPSEs

1. Bharat Heavy Electricals Limited

2. Coal India Limited

3. GAIL (India) Limited

4. Indian Oil Corporation Limited

5. NTPC Limited

6. Oil & Natural Gas Corporation Limited

7. Steel Authority of India Limited

Source: http://dpe.nic.in/publications/list_of_maharatna_navratna-and_miniratna

According to the Department of Public Enterprises guidelines, company qualifying for the Maharatna status 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 and it should be listed on the bourses as well.

A Maharatna firm can take investment decision of up to Rs 5,000 crore without going to the government. For Navratna firms, this limit is Rs 1,000 crore.

However, both these PSUs (BHEL and GAIL) do not have the requisite number of non-official directors on its board and are therefore not eligible to exercise the Maharatna powers till the time required number of officials are appointed on their boards.

As regards BHEL, the company's net profit stood at Rs 7,039 crore on a turnover of Rs 49,244 crore. The entity's net worth stood at Rs 25,373 crore during 2011-12. For GAIL, the net profit stood at Rs 3,653 crore on a turnover of Rs 41,000 Crore. The net worth for GAIL stood at 21,449 Crore in FY 11-12.