Industry & Economy
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PSU
5 CIL subsidiaries may become mini ratnas
Ambarish Mukherjee
More energy
The boards of the companies will be empowered to decide on capital expenditure on new projects, modernisation, purchase of equipment etc without Government approval up to Rs 250 crore or equal to 50 per cent of their net worth, whichever is less.
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New Delhi
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Feb. 24
The Department of Public Enterprises (DPE) is examining granting of Mini Ratna status to five subsidiaries of Coal India Ltd (CIL).
These companies are South Eastern Coalfields Ltd (SECL), Mahanadi Coalfields Ltd (MCL), Northern Coalfields Ltd (NCL), Western Coalfields Ltd (WCL) and Central Coalfields Ltd (CCL).
The parent, CIL, had made a request to grant Mini Ratna status to these companies in December last year, following which the Ministry of Coal (MoC) had forwarded the proposal to the DPE earlier this year.
What is being examined, according to official sources, is an old loan taken by CIL from the World Bank.
"We are seeing whether the full loan was paid as well as the interest, and whether some interest payment stands outstanding. If that is so, we would have to examine whether we had received a interest waiver or not. The reason had to be ascertained before taking the decision."
Mini Ratna status would give more autonomy to the boards of these profitable coal-producing companies, none of which depend on budgetary supports or Government guarantees.
It will empower the boards of these companies to decide on capital expenditure on new projects, modernisation, purchase of equipment etc without Government approval up to Rs 250 crore or equal to 50 per cent of their net worth, whichever is less.
It would also enable the companies to invest in joint ventures and subsidiaries within the country up to 15 per cent of their respective net worth in a single project with an upward ceiling of up to Rs 250 crore.
The overall ceiling on such investment in all projects put together shall be 30 per cent of the net worth of the public sector enterprise.
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