State-owned BHEL is aiming to achieve a networth of Rs 23,755 crore this fiscal as it will brighten the company’s prospects of getting the coveted Maharatna status.

BHEL has set a target of reaching the networth of Rs 23,755 crore in 2011-12, according to the Memorandum of Understanding (MoU) it has signed with the Ministry of Heavy Industries and Public Enterprises.

Once the target is realised, the PSU would have an average networth of over Rs 15,000 crore for three straight financial years - one of the criteria needed for the Maharatna status.

Even as the company has set a goal for qualifying for the coveted status given to PSUs, the government is considering to grant it the Maharatna tag soon with a condition that it would meet the criteria within this fiscal, sources said.

The government is also planning to offload five per cent of its stake in BHEL through a follow-on public offer that could fetch the exchequer about Rs 4,700 crore.

Once it becomes Maharatna, BHEL board would be able to take decisions on investments up to Rs 5,000 crore, without the government approval. Such a flexibility will give a boost to the PSU, which is facing stiff competition especially from Chinese power gear makers.

At present, BHEL is a Navratna - which allows it to independently take investments decisions of up to Rs 1,000 crore.

The conditional status for the cash-rich BHEL is being considered also for the reason that it is scouting for investment opportunities within and outside the country.

To be eligible for the coveted status, a company also needs to have an average annual turnover and net profit of more than Rs 25,000 crore and Rs 5,000 crore respectively, for three consecutive fiscals.

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