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The Government, from time to time confers Navratna status on Central Publilc
Sector Enterprises (CPSEs) once they fulfill
certain stipulated criteria. Recently, Shipping Corporation of India Ltd.
was granted Navratna status making it the 17th
member of the elite Navratna club.
‘Navratna’
literally means ‘nine jewels’. The Government had identified nine Public
Sector Enterprises (PSEs) in July 1997 that had
comparative advantages and potential to emerge as global giants as Navratnas. These are: BHEL, BPCL, GAIL, HPCL, IOC, MTNL, NTPC,
ONGC, and SAIL. These PSEs were given enhanced autonomy and delegation of
powers to incur capital expenditure, to enter into technology joint
ventures/strategic alliances, to effect
organizational restructuring, to create and abolish below Board level
posts, to raise capital from domestic and international market, to establish
financial joint ventures and wholly owned subsidiaries, etc. Over the
years, many more CPSEs were conferred Navratna status as they fulfilled the required
criteria.
The
enhanced powers presently delegated to the Boards of Navratna
PSEs broadly include:
i) To
incur capital expenditure on purchase of new items or for replacement,
without any monetary ceiling.
ii) To enter into technology joint ventures
or strategic alliances.
iii) To obtain by purchase or other
arrangements, technology and know-how.
iv) To effect
organizational restructuring, opening of offices in India and abroad, creating activity
centers etc.
v) Creation and abolition of all posts
including and up to those of non Board level Directors.
vi) The Board of Directors of these PSEs have the power to further
delegate the powers relating to Human Resource Management.
vii)
To raise debt from the domestic
capital markets and for borrowings from international market, which would
be subject to the approval of RBI/ Department of Economic
Affairs, as may be required and should be obtained through the
administrative Ministry.
viii) To establish financial joint ventures and
wholly owned subsidiaries in India or abroad, with certain limitations; and
ix) Mergers and acquisitions subject to certain conditions.
Performance of all
Navratana Companies is reviewed by an Apex
Committee from time to time. The
proposals for granting Navratna status to CPSEs are received through concerned administrative
Ministries/Departments. PSEs fulfilling the above criteria are generally
granted Navratna
status.
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