State-run Rashtriya Ispat Nigam Limited (RINL) has joined the league of navratna PSUs, which enjoy greater financial and functional autonomy. "A committee chaired by the Cabinet Secretary has cleared Navratna status for RINL," Steel Secretary Atul Chaturvedi said on Monday. The Department of Public Enterprises (DPE) will notify the new status to the steel maker, which was earlier rated as miniratna. "This (the navratna tag) will add to RINL financial powers," Chaturvedi said. A navratna PSU can take investment decisions for up to Rs 1,000 crore without seeking government approval. RINL is undertaking about Rs 12,000-crore project to almost double its annual production capacity to about 6 million tonnes by March 2011.
As for SAIL, Chaturvedi said the proposal to upgrade steel giant's status to maharatna has been cleared by the DPE but the apex committee is yet to approve the same. To be eligible for the top category, a PSU needs to have a three-year track record of annual net profit of over Rs 5,000 crore, net worth of more than Rs 15,000 crore and turnover of more than Rs 25,000 crore, besides being listed on the stock exchanges. A maharatna tag will give the companies the power to take investment decisions of up to Rs 5,000 crore. Of the 158 profit-making PSUs, 18 enjoy the navratna status while 62 are mini-Navratnas. No PSU has yet been accorded maharatna status, although the Cabinet has approved the scheme in December 2009.
As for SAIL, Chaturvedi said the proposal to upgrade steel giant's status to maharatna has been cleared by the DPE but the apex committee is yet to approve the same. To be eligible for the top category, a PSU needs to have a three-year track record of annual net profit of over Rs 5,000 crore, net worth of more than Rs 15,000 crore and turnover of more than Rs 25,000 crore, besides being listed on the stock exchanges. A maharatna tag will give the companies the power to take investment decisions of up to Rs 5,000 crore. Of the 158 profit-making PSUs, 18 enjoy the navratna status while 62 are mini-Navratnas. No PSU has yet been accorded maharatna status, although the Cabinet has approved the scheme in December 2009.
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