Govt preparing Cabinet note on 'Maharatana'

NEW DELHI: Kick-starting the process of giving more financial autonomy to profit making PSUs, the Department of Public Enterprises is preparing a Cabinet note to accord 'Maharatna' tag to the state-owned units.

"We are in the process of preparing a Cabinet proposal," a senior official in the ministry of Heavy Industry and Public Enterprises said.

The new tag would give the public sector units (PSUs) greater autonomy to forge joint ventures, float overseas companies and the freedom to decide on mergers and acquisitions of a particular size.

'Maharatna' firms would be allowed to make investment decisions of up to Rs 5,000 crore without having to go to the government for approval.

Though the official did not name the units that may get the tag he said, "the basic criteria would be that all those Navratna companies will be eligible to participate for Maharatna".

The Department of Public Enterprises has sent a strict qualifying criterion of turnover, net worth, profitability and overseas presence to qualify for the 'Maharatna' label.