Power sector focused non-banking finance company REC Ltd has been accorded the status of a ‘Maharatna’ Central Public Sector Enterprise.
Key Points
- It has become the 12th company to attain the Maharatna status.
- The other 11 Maharatna CPSEs at present are Power Finance Corporation, Bharat Heavy Electricals Ltd, Bharat Petroleum Corp. Ltd, Coal India Ltd, GAIL (India) Ltd, Hindustan Petroleum Corp. Ltd, Indian Oil Corp. Ltd, NTPC Ltd, Oil & Natural Gas Corp. Ltd, Power Grid Corp. of India Ltd, and Steel Authority of India Ltd.
- Now, India has 13 Navratna and 74 Miniratna Central Public Sector Enterprises (CPSEs).
Criteria
- For a company to be categorized as a Maharatna status, a company should be listed on an Indian stock exchange and have an average annual turnover of over Rs. 25,000 crore during the previous three years.
- It should also have an average annual net worth during the previous three years of more than Rs. 15,000 crore and an average net profit of over Rs. 5,000 crore during the same period.
- The granting of ‘Maharatna’ status will impart enhanced powers to the company’s board while taking financial decisions.
- REC can now invest up to Rs. 5,000 crore, or 15% of its net worth, in a single project after its Maharatna status.
