List of miniratna PSUs to be pruned
Govt is likely to strip miniratna status of several companies which have failed to meet the eligibility criteria, an official in the department of public enterprises said.
By Anto Antony, ET Bureau |
NEW DELHI: The government is likely to strip the miniratna status of several companies which have failed to meet the eligibility criteria, an official in the department of public enterprises said. There are 57 such firms, including 10 listed companies, but the list is likely to be pruned after a performance review by the government.
���The review will be stringent this time. Not only those companies which have sought additional budgetary support, but also those which have been poor performers in terms of net profit to net worth ratio, manpower cost to total cost of production and sales, may be recommended to be stripped off the miniratna status,��� said a senior government official who did not wish to be named.
The performance review, which is conducted once in three years, is expected to be completed within three months. The recommendations will be sent to administrative ministries concerned that have the mandate to strip the company of this status. In case of any disagreement, the matter would be sent to the Union Cabinet.
According to officials in the department of public enterprises, preliminary review suggests several public sector undertakings including Indian Medicines Pharmaceuticals Corporation and National Film Development Corporation stand a chance of loosing their miniratna tag.
The status gives higher financial autonomy to the company boards for investment decisions. However, these companies must be financially independent to be recognised as a miniratna. Department officials said the companies not worthy of the financial and functional autonomy granted to them should be stripped off the status.
���The review will be stringent this time. Not only those companies which have sought additional budgetary support, but also those which have been poor performers in terms of net profit to net worth ratio, manpower cost to total cost of production and sales, may be recommended to be stripped off the miniratna status,��� said a senior government official who did not wish to be named.
The performance review, which is conducted once in three years, is expected to be completed within three months. The recommendations will be sent to administrative ministries concerned that have the mandate to strip the company of this status. In case of any disagreement, the matter would be sent to the Union Cabinet.
According to officials in the department of public enterprises, preliminary review suggests several public sector undertakings including Indian Medicines Pharmaceuticals Corporation and National Film Development Corporation stand a chance of loosing their miniratna tag.
The status gives higher financial autonomy to the company boards for investment decisions. However, these companies must be financially independent to be recognised as a miniratna. Department officials said the companies not worthy of the financial and functional autonomy granted to them should be stripped off the status.
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