Maharatna status to Bharat Petroleum Corporation Ltd

Bharat Petroleum set to get Maharatna status

Question: Recently, the panel constituted under the chairmanship of the Cabinet Secretary, Bharat Petroleum Corporation Ltd a public sector oil marketing company has been given Maharatna status. Now how many companies have Maharatna  status?
(a) 7
(b) 9
(c) 8
(d) 6
Answer: (c)
Related Facts:

  • On September 8th, 2017, the panel constituted under the chairmanship of the Cabinet Secretary, it was decided to give Maharatna status to Bharat Petroleum Corporation Ltd (BPCL) a public sector oil marketing company,
  • This effect will be announced soon by the Department of Public Enterprises of the Central Government.
  • After this, the total number of Maharatna companies will be 8.
  • At present, the Central Government has given the status of Maharatna to 7 Central PSUs which are as follows:
  1. Bharat Heavy Electricals Ltd. (BHEL).
  2. Coal India Ltd. (CIL).
  3. Gail India Ltd. (GIL)
  4. Indian Oil Corporation Ltd. (IOCL).
  5. NTPC Ltd. (NTPC Ltd)
  6. Oil and Natural Gas Ltd. (ONGC Ltd)
  7. Indian Steel Authority Ltd. (SAIL)
  8. The Government had introduced the ‘Navratna’ scheme, in1997, to identify Central Public Sector Enterprises (CPSEs) that had comparative advantages and to support them comparative advantages and to support them in their drive to become global giants.
  • It aims to enable large public sector central undertakings (CPSE) to expand its business and emerge as the world’s largest company.
  • ‘Maharatna’ Central Public Sector Undertaking can invest Rs. 5000 crores in a project.
  • The CPSEs fulfilling the following criteria are eligible to be considered for grant of Maharatna status:
  1. Having Navratna status.
  2. Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations.
  3. Average annual turnover of more than Rs. 25,000 crore, during the last 3 years.
  4. Average annual net worth of more than Rs. 15,000 crore, during the last 3 years.
  5. Average annual net profit after tax of more than Rs. 5,000 crore, during the last 3 years.
  6. Should have significant global presence/international operations.
  • In order to help the central government identify the central public sector undertakings with a comparatively beneficial situation and help them emerge as huge enterprises at the international level, the central government started the ‘Navaratna’ scheme in 1997.
  • Criteria for grant of Navratna status:
  • The Miniratna Category – I and Schedule ‘A’ CPSEs, which have obtained ‘excellent’ or ‘very good’ rating under the Memorandum of Understanding system in three of the last five years, and have composite score of 60 or above in the six selected performance parameters, namely,
  1. Net profit to net worth,
  2. Manpower cost to total cost of production/services,
  3. Profit before depreciation, interest and taxes to capital employed,
  4. Profit before interest and taxes to turnover,
  5. Earning per share and
  6. Inter-sectoral performance.
  • At present, the Central Government has given 17 CPSEs as ‘Navaratnas’ status, which are as follows:

(1) Bharat Electronics Ltd. (BEL).

(2) Indian Container Corporation Ltd. (CONCOR: Container Corporation of India Ltd.)

(3) Hindustan Aeronautics Ltd. (HAL).

(4) Mahanagar Telephone Nigam Ltd. (MTNL)

(5) National Building Construction Corporation Ltd. (NBCCL).

(6) Neyveli Lignite Corporation Ltd.

(7) Power Finance Corporation Ltd.

(8) National Steel Corporation Ltd.

(9) Indian Shipping Corporation Ltd.

(10) Bharat Petroleum Corporation Ltd.

(11) Engineers India Ltd.

(12) Hindustan Petroleum Corporation Ltd.

(13) National Aluminum Company Ltd.

(14) NMDC Ltd.

(15) Oil India Ltd.

(16) Power Grid Corporation of India Ltd.

(17) Indian Rural Electrification Corporation Ltd.

Criteria for grant of Miniratna status :-

The CPSEs which have made profits in the last three years continuously and have positive net worth are eligible to be considered for grant of Miniratna status.
Currently there are 71 Miniratna.

Reference:
http://www.financialexpress.com/industry/bharat-petroleum-set-to-get-maharatna-status/846141/
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