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Oil India – Maharatna
August 8 , 2023
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- The Finance Ministry upgraded two oil sector companies, Oil India and ONGC Videsh, to Maharatna and Navratna categories of central public sector enterprises (CPSEs), respectively.
- The new status will help the companies take decisions on large investments on their own, both within India and abroad.
- Oil India was earlier a Navratna company, while ONGC Videsh was a Miniratna company.
- OIL will be the 13th Maharatna amongst the CPSEs
- Its origins are dating back to 1889 — the year of oil discovery in India.
- The state-owned enterprise is under the administrative control of the Ministry of Petroleum and Natural Gas and
- OIL is the second largest national oil and gas company in India.
- The Maharatna scheme was introduced for CPSEs in 2010 in order to empower them to expand operations and emerge as global giants.
- CPSEs fulfilling the following criteria may be considered for Maharatna status: Holding Navratna status; listed on the Indian stock exchange, with a minimum prescribed public shareholding under SEBI regulations.
- An average annual net profit exceeding Rs 2,500 crore during the last three years; and the significant global presence or the international operations will also be considered.
- OVL will be 14th Navratna amongst the CPSEs.
- A Navratna CPSE can incur capital expenditure, without any monetary ceiling, on the purchase of new items or for replacement.
- It can enter into technology joint ventures or strategic alliances. It can obtain, through purchase or other arrangements, technology and knowhow.
- It can raise debt from the domestic capital markets and international market, subject to the approval of RBI/Department of Economic Affairs.
- It can establish financial joint ventures and wholly owned subsidiaries in India or abroad within an investment ceiling of Rs 1,000 crore.
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