Oil India Upgraded to Maharatna, ONGC Videsh to Navratna by Finance Ministry: The Finance Ministry of India promoted two large oil sector businesses, Oil India and ONGC Videsh, to the prestigious Maharatna and Navratna categories, providing them greater autonomy for investment, joint venture formation, and other financial decisions.
Daily Current Affairs Quiz: August 2023
Oil India’s Journey to Maharatna Status
- Oil India, previously classified as a Navratna company, has now been granted the esteemed Maharatna status, making it the 13th Maharatna CPSE (Central Public Sector Enterprises) in the country.
- For fiscal year 2022-23, the company reported a noteworthy annual turnover of Rs 41,039 crores and a net profit of Rs 9,854 crores.
- Being a fully integrated exploration and production company in the upstream sector, Oil India has a rich history dating back to 1889 when oil was first discovered in India.
- Under the administrative control of the Ministry of Petroleum and Natural Gas, Oil India stands as the second-largest national oil and gas company in the country.
ONGC Videsh’s Transition to Navratna CPSE
- ONGC Videsh is a part of the Ministry of Petroleum and Natural Gas.
- The primary emphasis of ONGC Videsh is to search for oil and gas reserves beyond India’s boundaries, which includes activities such as exploration, development, and production of these precious resources.
- Having obtained a status upgrade to a Navratna CPSE, the company becomes the 14th Navratna CPSE in the country.
- For the fiscal year 2022-23, ONGC Videsh recorded an annual turnover of Rs 11,676 crore and a net profit of Rs 1,700 crore.
The Significance of the Maharatna Status
- The Maharatna status was introduced for CPSEs with the aim of empowering them to expand their operations and become global leaders.
- Notable CPSEs like BHEL, Indian Oil, ONGC, BPCL, HPCL, and SAILs have already been conferred Maharatna status.
- Companies aspiring for Maharatna status must fulfill specific criteria, including holding Navratna status, being listed on the Indian stock exchange with a minimum prescribed public shareholding under SEBI regulations, maintaining an average annual net profit exceeding Rs 2,500 crore over the last 3 years, and demonstrating significant global presence or international operations.
Benefits of Navratna Status
- A Navratna CPSE is given certain advantages that improve its operational skills. Some of these advantages include the ability to undertake capital expenditures without regard to monetary limits when purchasing new or replacement items.
- Navratna CPSEs are also allowed to enter technology joint ventures or strategic alliances and obtain technology and know how through purchases or other arrangements.
- Additionally, they can raise debt from domestic and international markets, subject to the approval of RBI/Department of Economic Affairs, and establish financial joint ventures and wholly owned subsidiaries in India or abroad within an investment ceiling of Rs 1,000 crore.
Key takeaways for competitive examinations
- Chairman & Managing Director (CMD) of Oil India Limited: Dr. Ranjit Rath