ONGC, IOC get ‘maharatna tag’

NEW DELHI: The government has empowered boards of state-run Oil & Natural Gas Corp (ONGC) and Indian Oil Corp (IOC) to invest up to 5,000 crore in a project without its approval on Tuesday by certifying them as ‘maharatna’ companies. India’s biggest fuel refining and marketing company IOC and country’s largest energy explorer ONGC are armed with greater financial powers just before their follow-on public offers (FPOs) expected in this fiscal year.

“The prestigious status of a ‘maharatna’ will empower us to chart new and innovative strategies and inspire us to scale greater heights in the future,’ IOC chairman BM Bansal said. Earlier, IOC was a ‘navratna’ with powers to invest in a project worth 1,000 crore or less. IOC and ONGC were among the four navratnas granted the maharatna tag in May. But they could not enjoy their new status because their board did not have required number of independent directors. Other two companies to get the elevated status were NTPC and SAIL.

Maharatna status provides greater autonomy and operational flexibility to state-run companies. Only a public listed navratna company, having minimum average turnover of 25,000 crore and net profit of 5,000 crore in past three years is eligible for the status.

Certificates were awarded to the companies by heavy industries & public enterprises minister Vilasrao Deshmukh, companies said in their statements.