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Government accords “Maharatna” status to PFC

  • Integrity Education, Delhi
  • 13, Oct 2021
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  • Govt. of India accorded  ‘Maharatna’ status to the state-owned Power Finance Corporation Ltd (PFC),thus giving PFC greater operational and financial autonomy. 
  • Incorporated in 1986, PFC is the largest Infrastructure Finance Company today, exclusively dedicated to Power Sector under the administrative control of the Ministry of Power.
  • The grant of ‘Maharatna’ status to PFC will impart enhanced powers to the PFC Board while taking financial decisions.
  • The Board of a ‘Maharatna’ CPSE can make equity investments to undertake financial joint ventures and wholly-owned subsidiaries and undertake mergers and acquisitions in India and abroad, subject to a ceiling of 15% of the Net Worth of the concerned CPSE, limited to Rs.5,000 crore in one project.
  • The Board can also structure and implement schemes relating to personnel and Human Resource Management and Training.
  • They can also enter into technology Joint Ventures or other strategic alliances among others.

Criteria for grant of Maharatna status to CPSEs

  • Having Navratna status
  • Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations
  • An average annual turnover of more than Rs. 25,000 crore during the last 3 years
  • An average annual net worth of more than Rs. 15,000 crore during the last 3 years
  • An average annual net profit after tax of more than Rs. 5,000 crore during the last 3 years
  • Should have significant global presence/international operations.