About: Maharatna Scheme

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:

  • With the addition of Power Finance Corporation Ltd (PFC), there are currently 11 Maharatna companies in India. These are:
    • Bharat Heavy Electricals Ltd.,
    • Bharat Petroleum Corporation Ltd.,
    • Coal India Ltd.,
    • GAIL (India) Ltd.,
    • Hindustan Petroleum Corporation Ltd.,
    • Indian Oil Corporation Ltd.,
    • NTPC Ltd.,
    • Oil & Natural Gas Corporation Ltd.,
    • Power Grid Corporation of India Ltd.,
    • Steel Authority of India Ltd.
    • Power Finance Corporation Ltd (PFC)