Which of the following statement about Maharatna Scheme for Central Public Sector Enterprises CPSEs is not correct?
Which of the following statement about Maharatna Scheme for Central Public Sector Enterprises CPSEs is not correct?
The correct option is B A CPSEs can be awarded the ‘Maharatna’ status even without having ‘Navratna’ status.
The Boards of ‘Maharatna’ CPSEs in addition to exercising all powers to ‘Navratna’ CPSEs, will exercise enhanced powers in the area of investment in joint ventures/subsidiaries and creation of below Board level posts. The Boards of ‘Maharatna’ CPSEs will have powers to (a) Make equity investment to establish financial joint ventures and wholly owned subsidiaries in India or abroad and (b) undertake mergers & acquisitions, in India or abroad, subject to a ceiling of 15% of the net worth of the concerned CPSE in one project, limited to an absolute ceiling of Rs. 5,000 crore (Rs. 1,000 core for ‘Navratna’ (CPSEs).
The Boards of ‘Maharatna’ CPSEs will have powers to create below Board level posts up to E-9 level.
Presently there are seven ‘Maharatna’ CPSEs, viz. (i) Bharat Heavy Electricals Limited, (ii) Coal India Limited, (iii) GAIL (India) Limited, (iv) Indian Oil Corporation Limited, (v) NTPC Limited, (vi) Oil & Natural Gas Corporation Limited and (vii)Steel Authority of India Limited.
The CPSEs meeting the following eligibility criteria are considered for ‘Maharatna’ status:
- Having ‘Navratna’ status.
- Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations.
- An average annualturnover of more than Rs. 25,000 crore during the last 3 years.
- An average annual net worth of more than Rs. 15,000 crore during the last 3 years.
- An average annual net profit after tax of more than Rs. 5,000 crore during the last 3 years.
- Should have significant global presence /international operations.
The procedure for grant of ‘Maharatna’ status as well as their review is similar to that in vogue for the grant to ‘Navratna’ status.
A CPSEs can be awarded the ‘Maharatna’ status even without having ‘Navratna’ status.
The Boards of ‘Maharatna’ CPSEs in addition to exercising all powers to ‘Navratna’ CPSEs, will exercise enhanced powers in the area of investment in joint ventures/subsidiaries and creation of below Board level posts. The Boards of ‘Maharatna’ CPSEs will have powers to (a) Make equity investment to establish financial joint ventures and wholly owned subsidiaries in India or abroad and (b) undertake mergers & acquisitions, in India or abroad, subject to a ceiling of 15% of the net worth of the concerned CPSE in one project, limited to an absolute ceiling of Rs. 5,000 crore (Rs. 1,000 core for ‘Navratna’ (CPSEs).
The Boards of ‘Maharatna’ CPSEs will have powers to create below Board level posts up to E-9 level.
Presently there are seven ‘Maharatna’ CPSEs, viz. (i) Bharat Heavy Electricals Limited, (ii) Coal India Limited, (iii) GAIL (India) Limited, (iv) Indian Oil Corporation Limited, (v) NTPC Limited, (vi) Oil & Natural Gas Corporation Limited and (vii)Steel Authority of India Limited.
The CPSEs meeting the following eligibility criteria are considered for ‘Maharatna’ status:
- Having ‘Navratna’ status.
- Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations.
- An average annualturnover of more than Rs. 25,000 crore during the last 3 years.
- An average annual net worth of more than Rs. 15,000 crore during the last 3 years.
- An average annual net profit after tax of more than Rs. 5,000 crore during the last 3 years.
- Should have significant global presence /international operations.
The procedure for grant of ‘Maharatna’ status as well as their review is similar to that in vogue for the grant to ‘Navratna’ status.
