NTPC gets Maharatna status

The Department of Public Enterprises, under the Ministry of Heavy Industries & Public Enterprises, has granted the Maharatna status to NTPC. Consequent to the grant of this status, the Board of Directors of NTPC is now empowered to make equity investments, to establish joint ventures and wholly-owned subsidiaries and to undertake mergers and acquisitions, in India or abroad, up to a ceiling of 15% of its net worth, or Rs 5,000 crore, in one project, as against the limit of Rs 1,000 crore available to Navaratna companies. Apart from NTPC, three other CPSEs-- Steel Authority of India Limited (SAIL), NTPC, Indian Oil Corporation Limited (IOC) and Oil and Natural Gas Corporation Limited (ONGC)-- have also been accorded the coveted status.

An Inter-Ministerial Committee, headed by the Secretary of the Department of Public Enterprises (DPE), Bhaskar Chatterjee, has issued the recommendation for the grant of the newly-introduced status to the public sector power major. The IMC took this decision over the course of a recently-held meeting, given that the power firm has not only registered impressive performance over the years, but also meets all the criteria laid down for the accord of the status. According to the Committee, such an enhanced delegation will facilitate NTPC`s goals to create joint ventures for new projects, expansion of existing joint ventures, set-up large capacity joint venture projects, setting up of special purpose vehicles for participating in various bidding process and acquisition of stakes in coal mines abroad.

The Union Cabinet approved the introduction of `Maharatna` category for CPSEs on December 24, 2009. The main objective of the Maharatna scheme is to empower mega-CPSEs to expand their operations and emerge as global giants. The award of this category will act as an incentive for other Navratna companies and provide brand value to CPSEs.