MoC seeks Navaratna status for Neyveli Lignite Corporation Limited (NLC).

The Ministry of Coal (MoC) has requested the Department of Public Enterprises, under the Ministry of Heavy Industries and Public Enterprises, to accord the Navaratna status to the public sector lignite producer, Neyveli Lignite Corporation Limited (NLC). This move of the MoC is aimed at obtaining greater financial autonomy for the central public sector enterprise (CPSE) under its administrative control. The domestic coal producer, Coal India Limited is the sole CPSE in the coal sector, which has the Navaratna tag since October 2008.
 Importantly, the grant of this coveted status will empower NLC to make capital expenditure up to Rs 1,000 crore, without seeking prior approval from the Central Government. Being a Category-I Miniratna CPSE, the management of NLC can only clear projects worth up to Rs 500 crore. Presently, there are 19 Navaratna CPSEs, including the four Maharatna CPSEs, namely NTPC, Steel Authority of India Limited (SAIL), NTPC, Indian Oil Corporation Limited (IOC) and Oil and Natural Gas Corporation Limited (ONGC), 47 Category-I Miniratna enterprises and 14 Category-II Miniratna CPSEs.
 The lignite producer targets an investment of Rs 604.97 crore, during the current fiscal, and will probably end up with cumulative debt of Rs 5,978.61 crore, against its total assets of Rs 16,677.08 crore.
 To note, the Navratna status is being conferred by the DPE on the basis of six parameters, namely net profit to net worth, total manpower cost to total cost of production or cost of services, profit before depreciation-interest-and taxes (PBDIT) to capital employed, PBDIT to turnover, earning per share (EPS) and inter-sectoral performance. Moreover, a company must first be a Miniratna and have four independent directors on its board before it can be accorded the Navratna status.