New Delhi: The government has upgraded the status of two PSUs, said the Department of Public Enterprises (DPE) on Thursday. While India’s second-largest oil and gas explorer, Oil India Limited (OIL) has been upgraded to the status of a Maharatna CPSE, ONGC’s overseas subsidiary, ONGC Videsh Ltd (OVL), has been upgraded to the status of a Navratna CPSE. The news was announced by the DPE in two separate tweets.
“Hon’ble Finance Minister approved upgradation of Oil India Ltd (OIL) to Maharatna CPSE. OIL will be the 13th Maharatna amongst the CPSEs. OIL is a M/o Petroleum & Natural Gas CPSE with an annual turnover of Rs 41,039 crores and net profit of Rs 9854 crores for the YEAR 2022-23,” said the DPE in a tweet.
And in a separate tweet, it added, “Hon’ble Finance Minister has approved the upgradation of ONGC Videsh Ltd (OVL) to Navratna CPSE. OVL will be 14th Navratna amongst the CPSEs. It is a M/o Petroleum & Natural Gas CPSE with an annual turnover of Rs 11,676 crores and net profit of Rs 1,700 crores for the year 2022-23.”
Oil India Limited (OIL) registered its highest-ever net profit since the company’s inception at Rs 6,810.40 crore in FY20223-23, recording a surge of 75.20 percent year-on-year on the back of higher operating income and growth in oil and gas production. The PSU saw 5.5 percent growth in its oil production at 3.18 MMT and 4.4 percent growth in gas production at 3.18 BCM, which was its highest gas production on record.
A Maharatna status invests more powers to the Board of Directors of a CPSE. For example, the PSU will have the power to undertake mergers and acquisitions in India and abroad, to make equity investments to establish financial joint ventures and wholly-owned subsidiaries, to raise debt from domestic capital markets and from international market, among others.
The Navratna status is presently subject to the condition that these PSEs shall not depend up on budgetary support or government guarantees. The status allows the Board of Directors of these CPSEs the power to allow mergers and acquisitions in India and abroad. However, they need an approval from the Cabinet Committee on Economic Affairs (CCEA) to make investments abroad. The Chief Executive of the PSE gets the power to approve business tours abroad of functional directors up to five days’ duration (other than study tours, seminars, etc) in emergency, under intimation to the Secretary of the administrative ministry.
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