Coal India may soon become a 'Navratna'

NEW DELHI: State-run Coal India Ltd may soon join the coveted 'Navratna' league of public sector enterprises that enjoy greater financial and managerial autonomy.

The country's largest coal producer "complies with all the criteria required for becoming a navratna, including the number of independent directors on its board," a senior official said.

As per government norms, a navratna firm should have at least four non-official directors on its board, a criteria that CIL fulfills.

The Department of Public Enterprises is likely to announce CIL's induction in the much sought-after club soon.

"The process is on and the announcement is likely to be made in a month's time," the official added.

Coal India would become the 18th member in the elite club, which includes heavyweights like National Aluminum Company, Hindustan Aeronautics Limited and Shipping Corporation of India.

Navratna status empowers PSUs to forge joint ventures both in India and abroad and spend Rs 1,000 crore or 15 per cent of their net worth on a single project without seeking government approval.

Coal India, which is currently a mini-ratna, plans to invest Rs 18,000 crore for coal production during the 11th five year plan.