The Hindu Business Line : OVL seeks Schedule `A' status

New Delhi May 3 ONGC Videsh Ltd (OVL), the overseas arm of ONGC, plans to approach the Government to upgrade it from its current status of a Schedule `B' company to the top category of Schedule `A' public sector company. The OVL Board, which met last Friday, has decided to pitch for the elevation and if the Government accepts the request, then OVL would be rubbing shoulders with public sector enterprises such as Indian Oil Corporation and ONGC.

Public enterprises have been divided into four schedules — A to D — on the basis of criteria such as turnover, profit, investment and capital. The elevation gives the company's board of directors more powers and better pay. Sources told Business Line that, "Since we are meeting the criteria prescribed for schedule `A' companies, we have decided to approach the Government."

Performance

The company's turnover was more than some of the schedule `A' companies. Revenues of OVL increased 36 per cent to Rs 8,171 crore in the financial year 2006 (Rs 6,026 crore in 2005) and profit after tax (PAT) went up 16 per cent to Rs 901 crore (Rs 761 crore in the financial year 2005).

OVL's turnover is expected to be close to Rs 10,000 crore and profit Rs 1,000 crore during the financial year 2007.

"The upgradation in category would enhance the character of the company, and when it goes for international biddings it would reflect that it is in the top rung of the public sector enterprises," sources stated.

Department of Public Enterprises (DPE) categorises a company in the appropriate schedule, which determines its organisational structure at the top level. Categorisation of PSUs is done by DPE on the basis of proposals received from the administrative Ministry/Department concerned, and in consultation with the Public Enterprises Selection Board. For the purpose of initial categorisation of PSUs, the DPE had developed certain broad criteria/parameters.

The parameters to be adopted for this purpose are quantitative factors such as investment (paid capital), capital employed (net block and working capital), net sales, profit, number of employees, number of units, and qualitative factors such as national importance, complexities of problems, level of technology, prospects for expansion and diversification of activities and competition from other sectors.

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