Bharat Petroleum Becomes a Maharatna (Download PDF)

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State-run oil marketing company Bharat Petroleum Corporation (BPCL) has been awarded the Maharatna from the present Navratna status. Decision to elevate BPCL to Maharatna status taken by panel headed by Cabinet secretary.

Maharatna Companies
  • BPCL now in eight Central Public Sector Enterprises (CPSE) with Maharatna status.
  • Status provides BPCL Board to enhanced powers enabling rapid expansion in India and abroad.

What is Navratna Scheme?

  • Government introduced Navratna scheme in 1997, to identify Central Public Sector Enterprises (CPSEs) with comparative advantages
  • There are three levels of companies: Maharatna, Navratna and Miniratna CPSEs
  • The status enables such CPSEs to become global giants through more autonomy and funding.
  • The Boards of Navratna CPSEs have powers in following areas: capital expenditure, investment in joint ventures or subsidiaries, mergers & acquisition and human resources management

Maharatna Companies

  • “Maharatna” CPSEs introduced in 2009, empower the mega CPSEs to expand their operations becoming Indian Multinational Companies (MNCs) ,
  • There are seven Maharatna companies:
    • Bharat Heavy Electricals (BHEL)
    • Coal India (CIL)
    • GAIL (India)
    • Indian Oil Corporation
    • NTPC
    • Oil and Natural Gas Corporation (ONGC)
    • Steel Authority of India (SAIL) .
  • These state-owned units operate in strategic fields such as coal, petroleum, steel, heavy engineering, telecommunications, power transmission, and transportation.

Criteria for Maharatna Status

CPSEs must fulfill following criteria:

  • Have Navratna status.
  • Average annual turnover of more than ₹ 25,000 crore, during last 3 years.
  • Average annual net worth of more than ₹ 15,000 crore, during last 3 years.
  • Average annual net profit after tax of more than ₹ 5,000 crore, during last 3 years.
  • Significant global presence and international operations.
  • Listed on Indian stock exchange with minimum prescribed public shareholding limit under SEBI regulations.

- Published/Last Modified on: October 12, 2017

Economy

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