Oil India Limited has become the 13th Maharatna Central Public Sector Enterprises.
Recently, the Finance Ministry bestowed the prestigious Maharatna status upon Oil India Limited (OIL), thus making the company the 13th Maharatna Central Public Sector Enterprise (CPSE). The Department of Public Enterprises (DPE) made this major announcement through its official Twitter account. The tweet said, “Hon’ble Finance Minister approved the upgradation of Oil India Ltd (OIL) to Maharatna CPSE. OIL will be the 13th Maharatna amongst the CPSEs. OIL is a M/o Petroleum & Natural Gas CPSE with an annual turnover of Rs 41,039 crores and a net profit of Rs 9854 crores for the YEAR 2022-23.”
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This was not the only upgrade news as the DPE also tweeted about the Oil and Natural Gas Company (ONGC), which has now achieved Navratna company status. The tweet read, “Hon’ble Finance Minister has approved the upgradation of ONGC Videsh Ltd (OVL) to Navratna CPSE. OVL will be the 14th Navratna amongst the CPSEs. It is a M/o Petroleum & Natural Gas CPSE with an annual turnover of Rs 11,676 crores and a net profit of Rs 1700 crores for the YEAR 2022-23.”
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The Maharatna scheme was established on May 19, 2010, for Central Public Sector Enterprises (CPSCs). Its purpose is to foster the growth of major CPSCs and propel them to become global giants. Under this scheme, Navratna companies are granted financial autonomy to invest up to Rs 1,000 crore without seeking clearance from the government.
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To qualify for the Maharatna status, a company must first attain Navratna status, possess an annual net worth of Rs 15,000 crore for the past 3 years, demonstrate an annual net profit of Rs 5,000 crore over the last 3 years, maintain an average turnover of Rs 25,000 crore in the last 3 years, and be listed on the Indian stock market.
To be recognised as a Navratna company, a CPSE with Miniratna status must score at least 60 out of 100 in specific parameters, including net worth, net profit, total cost of production, total manpower cost, cost of services, capital employed and Profit Before Depreciation, Interest, and Taxes (PBDIT). Furthermore, the company should have at least 4 independent board directors.
