What is the News?
Power Finance Corp. Ltd(PFC) is set to become the 11th Maharatna Central Public Sector Enterprise (CPSE) with an inter-ministerial committee clearing the status.
What is Maharatna Status?
Maharatna Status was introduced for Central Public Sector Enterprises(CPSEs) in 2010 in order to empower mega CPSEs to expand their operations and emerge as global giants.
Criteria for grant of Maharatna status to CPSEs: The CPSEs meeting the following criteria are eligible to be considered for grant of Maharatna status.
Having Navratna status,
Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations,
An average annual turnover of more than Rs. 25,000 crore during the last 3 years,
An average annual net worth of more than Rs. 15,000 crore during the last 3 years,
An average annual net profit after tax of more than Rs. 5,000 crore during the last 3 years,
Should have a significant global presence/international operations.
Benefits of Maharatna Status
A CPSE conferred with the Maharatna status would have a greater delegation of financial and operational powers to its Board of Directors. Further, it will have the power to expand its operations and improve its financial performance, especially in global markets.
The Board of Directors of such Maharatna CPSE shall also have the powers for mergers and acquisitions, subject to certain conditions.
The 10 Maharatna CPSEs at present are Bharat Heavy Electricals Ltd, Bharat Petroleum Corp. Ltd, Coal India Ltd, GAIL (India) Ltd, Hindustan Petroleum Corp. Ltd, Indian Oil Corp. Ltd, NTPC Ltd, Oil & Natural Gas Corp. Ltd, Power Grid Corp. of India Ltd, and Steel Authority of India Ltd.
Source: This post is based on the article “Power Finance Corp set to be India’s 11th Maharatna CPSE” published in Livemint on 21st September 2021.