BHEL and GAIL get Maharatna status

BHEL and GAIL get Maharatna statusThe Government on Friday conferred Maharatna status to BHEL and GAIL, in a move that will ensure greater financial as well as functional autonomy for the two public-sector companies.

While a Navratna firm can take investment decisions of up to Rs 1,000 crore on its own, the limit for a Maharatna firm is Rs 5,000 crore. In other words, a Maharatna firm can take investment decisions of up to Rs 5,000 crore without going to the government.

O P Rawat, secretary in the Department of Public Enterprises, said,

"The competent authority has approved the grant of Maharatna status for BHEL and GAIL which will give these public sector units greater financial autonomy."

However, neither BHEL nor GAIL have currently the requisite number of independent directors on their respective board and aren't therefore eligible to exercise the Maharatna powers till the time they appoint the required number of officials on their boards.

Currently, GAIL is reportedly short of four independent directors, while BHEL is short of six independent directors.

The Department of Public Enterprises has asked the Ministry of Petroleum & Natural Gas and the Department of Heavy Industry immediately induct the requisite numbers of independent directors on boards of the two PSUs to enable their boards to exercise the newly bestowed Maharatna powers.