New Delhi: Issuing a clarification on the delegation of powers to Maharatna, Navratna and Miniratna PSUs, the government has said that NRL, which is a subsidiary of OIL, need not come to the Board of Directors of its parent company to seek approval for its projects. The clarification was issued after Oil India Ltd (OIL) sought clarification from the Ministry of Petroleum and Natural Gas on whether it can approve the projects of Numaligarh Refinery Ltd (NRL) by exercising the powers granted to it as a Navratna PSU.
"The matter has been examined and it is clarified that the Boards of Maharatna, Navratna and Miniratna CPSEs have been delegated certain financial and operational powers. These delegated powers are to be exercised by the Boards of Maharatna/Navratna/Miniratna CPSEs as the case may be, in respect of projects of concerned CPSEs only and not for their subsidiaries. Therefore, Oil India Limited, a Navratna CPSE, cannot exercise delegated Navratna powers while approving the projects of its subsidiary CPSE(s)," said the Ministry of Petroleum and Natural Gas. The ministry's response was shared by the Department of Public Enterprises (DPE) in an office memo dated October 26.
NRL became a subsidiary of OIL after a consortium of OIL, Engineers India Ltd (EIL) and the Assam government acquired Bharat Petroleum Corporation Ltd's (BPCL) shares in the refiner. After the completion of the acquisition of shares, OIL's stake in NRL has increased to 80.16 percent, EIL's stands at 4.37 percent and that of the Assam government stands at 26 percent.
Recently, OIL said that NRL has earmarked an investment of Rs 90 crore for two oil blocks — Namrup and West Mechaki — where it is partnering with OIL as the operator.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)