Published on: October 13, 2021
What is in news : Govt. of India accorded ‘Maharatna’ status to the state-owned Power Finance Corporation Ltd (PFC), thus giving PFC greater operational and financial autonomy.
PFC – Power Finance Corporation
- Is an financial institution.
- Wholly owned by the Government of India.
- Essentially a state-run non-banking financial company that focuses on power infrastructure
What is MAHARATNA STATUS:
- Miniratna, Navratna and Maharatna Status are given to PSUs depending on their success.
- Department of Public Enterprises under Ministry of Heavy Industries & Public Enterprises grants these status.
- The “Maharatna” category for CPSEs was introduced in 2009 with objective to empower mega CPSEs to expand their operations and emerge as global giants or become Indian Multinational Companies (MNCs).
- At present, there are Eight Maharatna companies:
- Bharat Heavy Electricals (BHEL),
- Coal India (CIL),
- GAIL (India),
- Indian Oil Corporation Limited,
- Oil and Natural Gas Corporation (ONGC)
- Steel Authority of India (SAIL)
- Bharat Petroleum Corporation Limited
- Maharatna and Navaratna state-owned units operate in strategic fields such as coal, petroleum, steel, heavy engineering, telecommunications, power supply and transportation services.
- Criteria for Maharatna status
- Having Navratna status.
- Average annual turnover of more than Rs. 25,000 crore, during last 3 years.
- Average annual net worth of more than Rs. 15,000 crore, during last 3 years.
- Average annual net profit after tax of more than Rs. 5,000 crore, during last 3 years.
- Should have significant global presence and international operations.
- Listed on Indian stock exchange with minimum prescribed public shareholding limit under SEBI regulations.