On 3rd August 2023, the Department of Public Enterprises (DPE) under the Ministry of Finance, upgraded the status of 2 oil sector Central Public Sector Enterprises (CPSEs) namely Oil India Limited (OIL) and ONGC Videsh Ltd (OVL). The status of OIL and OVL has been upgraded to the status of Maharatna and Navratna CPSEs respectively. Earlier OIL was a ‘Navratna’ CPSE, while OVL was a Categry-I ‘Miniratna‘ CPSE.
- OIL, the second-largest National Exploration & Production (E&P) Company in India, now will be the 13th Maharatna amongst the CPSEs.
- OVL, the wholly owned subsidiary and overseas arm of Oil and Natural Gas Corporation Limited (ONGC), and the second largest petroleum company of India, now will be 14th Navratna amongst the CPSEs.
- The new status will help both OIL and OVL, take decisions on large investments on their own, both within India and abroad.
Note: Both OIL and OVL are under the administrative control of the Ministry of Petroleum and Natural Gas (MoP&NG), Government of India (GoI).
Maharatna Scheme:
i.The ‘Maharatna’ scheme was introduced for CPSEs, with effect from May 19, 2010.
ii.The objective of the scheme focuses on empowering specific Navratna CPSEs to facilitate the expansion of their operations and emerge as global giants by increasing their market share both in domestic as well as global markets.
Criteria for grant of Maharatna status to CPSEs:
For a company to be categorised as a Maharatna,
i.It should be listed on an Indian stock exchange, with a minimum prescribed public shareholding under Securities and Exchange Board of India (SEBI) regulations.
ii.The company should Hold Navratna status.
iii.The CPSEs should have an average annual net profit of over Rs. 2500 crores.
iv.Those companies with an annual net worth of Rs. 10,000/- Crore for 3 years Or an Average annual Turnover of Rs. 20,000 crore for 3 years are also eligible to get this status.
v.These companies are free to decide on investments up to 15% of their net worth in a project.
Note: OIL has an annual turnover of Rs 41,039 crores and a net profit of Rs 9,854 crores for the fiscal year 2022-23.
Navaratna Scheme:
i.The ‘Navratna’ scheme was introduced in 1997, to identify CPSEs, that had comparative advantages and to support them in their drive to become global giants.
ii.The Boards of Navratna CPSEs have been delegated powers in the areas of Capital Expenditure, investment in Joint Ventures (JV)/Subsidiaries,Human Resources Management, etc.
Criteria for grant of Navratna status to CPSEs:
For a company to be categorised as a Navratna,
i.The CPSEs which are Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ or ‘very good’ Memorandum of Understanding (MoU) ratings in 3 of the last 5 years.
ii.Granting the navratna status enhances financial autonomy to invest up to 1000 crores without any approval from the central government.To establish financial joint ventures and wholly owned subsidiaries in India or abroad with the stipulation that the equity investment of the CPSE should be limited to the following:-
a. Rs 1000 crore in any one project
b. 15 % of the net worth of the CPSE in one project
c. 30 % of the net worth of the CPSE in all joint ventures/subsidiaries put together
ii.The CPSE should have 4 independent Board Directors.
iii.The CPSEs have composite scores of 60 (out of 100) or above in the following 6 selected performance indicators and are eligible to be considered for a grant of Navratna status. The 6 parameters are:
- Net profit to Net worth; Manpower cost to total production cost or Service cost; Profit Before Depreciation, Interest, and Taxes (PBDIT) to capital employed; PBDIT to turnover; Earning per Share; Inter-Sectoral Performance.
Note: OVL has an annual turnover of Rs.11,676 crore and net profit of Rs.1700 crore for the fiscal year 2022-23.
List of total Maharatna and Navartna Companies 2023:
13 Maharatna CPSEs:
1.Bharat Heavy Electricals Limited
2.Bharat Petroleum Corporation Limited
3.Coal India Limited
4.GAIL India Limited
5.Hindustan Petroleum Corporation Limited
6.Indian Oil Corporation Limited
7.NTPC Limited
8.Oil & Natural Gas Corporation Limited,
9.Power Finance Corporation
10.Power Grid Corporation of India Limited
11.Rural Electrification Corporation Limited
12.Steel Authority of India Limited
13.Oil India Limited
14 Navratna CPSEs:
1.Bharat Electronics Limited
2.Container Corporation of India Limited
3.Engineers India Limited
4.Hindustan Aeronautics Limited
5.Mahanagar Telephone Nigam Limited
6.National Aluminium Company Limited
7.National Buildings Construction Corporation Limited
8.Neyveli Lignite Corporation Limited
9.NMDC Limited
10.Oil India Limited
11.Rail Vikas Nigam Limited
12.Rashtriya Ispat Nigam Limited
13.Shipping Corporation of India Limited
14.ONGC Videsh Limited
Recent Related News:
On 26th April 2023, Union Minister Nirmala Sitharaman, Ministry of Finance (MoF), approved the upgradation of Rail Vikas Nigam Limited (RVNL) to a Navratna Central Public Sector Enterprise (CPSE) from a Category-I MiniRatna CPSE.
About Oil India Private Limited (OIL):
Chairman & Managing Director (CMD)– Dr. Ranjit Rath
Headquarters– Duliajan, Assam
Incorporated on– 18th February 1959
