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Government granted ‘Maharatna’ status to Hindustan Petroleum and Power Grid Corp

On October 23, 2019, the Department of Public Enterprises, under the Ministry of Heavy Industry and Public Enterprises(MoHI&PE), granted ‘Maharatna‘ status to state-owned Public Sector Units(PSU) Hindustan Petroleum Corporation Ltd (HPCL) and Power Grid Corporation of India Ltd (PGCIL). These two PSUs will now have autonomous status and the boards can now take major financial decisions.

HP & PGCIL

Key Points
i.The Boards of Maharatna central public sector enterprises (CPSEs) can invest to undertake financial joint ventures(JVs) and wholly owned subsidiaries. They can also undertake mergers and acquisitions in India and abroad, with a ceiling of 15% of the worth of the concerned CPSE, limited to Rs 5,000 crore per project.
ii.Holding companies of a ‘Maharatna’ PSU can also transfer assets, float fresh equity and divest shareholding in subsidiaries.
iii. Maharatna status: The CPSEs categorise the PSUs in three forms, Maharatna, Navaratna, Miniratna. The categorization depends upon various factors such as turnover, Net worth, Net profit on a yearly basis and company’s presence in stock Exchange. Maharatna is the highest order of categorisation.

About PGCIL:
It is India’s largest electric power transmission utility firm.
Founded– 23 October 1989
Headquarters– Gurgaon, Haryana
Chairman & Managing Director(MD)– K. Sreekant
About HPCL:
Founded– 1974, after a takeover and merger of erstwhile Esso Standard and Lube India through the Esso (Acquisition of Undertaking in India) Act 1974.
Headquarters– Mumbai, Maharashtra
Chairman and MD– Mukesh Kumar Surana