Autonomy limit of Rs 5000 crore for Maharatna PSUs may be revised

NEW DELHI: Government will consider revising upward the Rs 5,000 crore-limit, upto which top-performing Maharatna PSUs can take investment decisions without approval from Cabinet or administrative ministries, Heavy Industries and Public Enterprises Minister Praful Patel said today.

"Yes, we will look at revisiting the investment cap...the Rs 5,000 crore cap for Maharatna in today's climate and overseas assets which they are looking at would not be enough," Patel told reporters on the sidelines of an Assocham event here.

He said the investment autonomy threshold needs to be revised also in the wake of falling value of rupee. "The limit cannot be relevant in terms of buying large assets abroad," the minister said.

The board of directors of a Maharatna firm can, at present, can take investment decisions independent of the government approval.

The government has been wanting the top PSUs to scout abroad for strategic assets like oil and minerals. But, it is felt that for the companies like Indian Oil Corporation and SAIL which are operating in the capital-intensive sectors, Rs 5,000 crore would not be sufficient to buy out assets abroad.

Patel said the Department of Public Enterprises would first "start discussions internally and with other ministries. Then, we will take it to the Cabinet".