Bharat Heavy Electricals Ltd (BHEL) has approached the government for the grant of coveted Maharatna status, which will give the company greater financial autonomy.

“The company had applied for the grant of the status to the Department of Public Enterprises (DPE) about a week ago,” sources said.

Once a company gets the Maharatna status, its board would not be required to take the government’s permission for investments up to Rs 5,000 crore in a joint venture project or wholly-owned subsidiary. For the Navratna companies, the limit is Rs 1,000 crore.

A company qualifying for the Maharatna status should have an average annual turnover of more than Rs 20,000 crore in the last three years, according to the new guidelines.

Earlier, annual turnover required for three consecutive years was Rs 25,000 crore.

Among others, the PSU must have a net worth of over Rs 10,000 crore and net profit of over Rs 2,500 crore, in the last three years.

BHEL qualifies for Maharatna status as the company meets the revised eligibility criteria in terms of net worth, turnover and net profit.

In 2010—11, the company reported a net profit of Rs 6,021 crore on a turnover of Rs 43,451 crore. The entity’s net worth in last fiscal stood at Rs 20,119 crore.

During 2009-10, its turnover was Rs 34,154 crore, net profit was Rs 4,311 crore and net worth was Rs 15,917 crore.

In 2008—09, power major recorded a turnover of Rs 28,033 crore, net profit of Rs 3,138 crore and net worth of Rs 12,939 crore.

At present, there are four Maharatna companies - ONGC, Indian Oil, SAIL and NTPC and 16 Navratna companies, including CIL, NMDC and GAIL.

BHEL manufactures equipment which caters to industries such as power, auto and railways.

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