Star trek begins for Navratnas

NEW DELHI: The government plans to create a super-elite among its so-called ���Navratna��� elite public sector companies, and could bestow them with greater freedom to take strategic decisions in key areas of investment and mergers & acquisitions.

Called ���Maharatnas���, these companies will form the cream among 18 Navratnas and will enjoy far greater autonomy in taking decisions.

The existing Navratna status gives these firms financial autonomy to invest up to Rs 1,000 crore in setting up joint ventures or subsidiaries abroad, freedom to decide on mergers and acquisitions, deciding on foreign tours for executives by the board without government permission.

The ministry of heavy industry and public enterprises is drawing up the policy and norms for the new Maharatna category.

���We have prepared a Cabinet note and have invited comments, opinions and suggestions of various ministries. The policy will be ready in 100 days,��� department of public enterprises (DPE) secretary R Bandyopadhyay said, adding that the new `Maharatna��� status would grant firms more autonomy than the existing Navratna PSUs. ���The Maharatna classification will grant them substantially enhanced delegated powers in investment, mergers and acquisitions,��� he said.

The demand for a `Maharatna��� status was first suggested by some of the state-run oil majors, and Mr Bandopadhyay said there was a demand that large companies with turnover of more than Rs 30,000 crore and with a potential to become Indian multinationals be given more power and freedom.

The 18 Navratnas, which include companies such as Indian Oil Corporation, Coal India, National Thermal Power Corporation, Steel Authority of India, Bharat Heavy Electricals Ltd and ONGC, have turnover ranging from Rs 3,526.83 crore in case of Coal India to Rs 2,74,659.63 crore for Indian Oil, according to the financial results of 2007-08.