Oil India gets Maharatna status, ONGC Videsh becomes Navratna

Oil India Ltd upgrade to the 'Maharatna' category has been granted by the Finance Ministry, which will give the OIL board more authority when making financial choices. The government-run oil company is now India's 13th Maharatna Central Public Sector Enterprise (CPSE) following the upgrade.

"The Finance Minister authorised Oil India Ltd's (OIL) upgrade to Maharatna CPSE. Among the CPSEs, OIL will be the 13th Maharatna. With an annual revenue of Rs 41,039 crore and a net profit of Rs 9,854 crore for the fiscal year 2022–23, OIL is an M/o Petroleum & Natural Gas CPSE, according to a tweet from the Department of Public Enterprises, which is now known as X.

The upgrade of ONGC Videsh Ltd (OVL) to Navratna CPSE has been authorised by the Finance Minister, according to a previous post from the Department of Public Enterprises. The CPSE OVL will be the 14th Navratna. It is an M/o Petroleum & Natural Gas CPSE with a net profit of Rs 1,700 crore and an annual revenue of Rs 11,676 crore.

Bharat Heavy Electricals Limited (BHEL), Bharat Petroleum Corporation Limited (BPCL), Coal India Limited, GAIL India Limited, Hindustan Petroleum Corporation Limited (HPCL), Indian Oil Corporation Limited, NTPC Limited, Oil & Natural Gas Corporation Limited (ONGC), Power Finance Corporation, Power Grid Corporation of India Limited, Rural Electrification Corporation Limited, and Steel Authority of India Limited (SAIL) are among the other businesses on the Maharatna list.

The corporation must have had an average annual net value of more than Rs 15,000 crore, an average annual sales of more than Rs 25,000 crore, and an average annual net profit of more than Rs 5,000 crore over the previous three years in order to qualify for the issuance of the Maharatna designation.

Companies that have been granted Maharatna status are free to "incur capital expenditure on purchase of new items or for replacement, without any monetary ceiling." Additionally, these CPSEs shouldn't rely on government assurances or budgetary support. Oil and Natural Gas Corporation Limited (ONGC) has a completely owned subsidiary and international division called ONGC Videsh. A firm with Navratna status has increased financial and operational freedom and is allowed to invest up to Rs 1,000 crore (15%).