About: Maharatna Scheme

Posted on October 15, 2021 by IAS Leave a comment

About: Maharatna Scheme

Maharatna scheme was introduced by the Government of India for Central Public Sector Enterprises (CPSEs) in May, 2010.
Objective: To empower mega CPSEs to expand their operations and emerge as global giants.
Under the scheme, a CPSE is accorded the status of “Maharatna” company when it meets certain eligibility criteria.
Concerned Department: Department of Public Enterprises, Ministry of Finance

Eligibility Criteria:

The CPSE meeting the following criteria can be proposed to be considered for Maharatna status:

Procedure for grant of Maharatna status:

The proposal(s) for grant of Maharatna status should be initiated by the concerned Administrative Ministries/Departments tothe Department of Public Enterprises.
The Department of Public Enterprises (DPE) would process the proposal(s) for consideration of the Inter-Ministerial Committee which is headed by the Secretary of DPE.
After consideration of the Committee, the proposal would be processed for consideration of the Apex Committee headed by the Cabinet Secretary.
The recommendations of the Apex Committee for grant of Maharatna status would be placed before the Union Minister of Heavy Industries for a decision.

Delegation of power to Maharatna CPSEs:

The Board of a ‘Maharatna’ CPSE can make equity investments to:
- Undertake financial joint ventures and wholly-owned subsidiaries,
- Undertake mergers and acquisitions in India and abroad.
- This is subject to a ceiling of 15% of the Net Worth of the concerned CPSE, limited to Rs.5,000 crore in one project.
The Board can also structure and implement schemes relating to personnel and Human Resource Management and Training.
They can also enter into technology Joint Ventures or other strategic alliances among others.

List of Maharatna CPSEs:

Economics

tagged with Economics, Maharatna Scheme

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