Oil India Limited becomes the 13th ‘Maharatna’ CPSE

Utkarsh Classes Last Updated 20-12-2023

Oil India Limited becomes the 13th ‘Maharatna’ CPSE

Economy 5 min read

Oil India Limited (OIL) has become the 13th Maharatna Central Public Sector Enterprises (CPSE) . In a notification issued by the Department of Public Enterprises,Union Ministry of Finance on 3 August 2023,OIL was upgraded from Navratna to Maharatna status .

OIL,under the Union Ministry of Petroleum and Natural Gas , is the second-largest public sector oil exploration and production company after ONGC.

Oil India Limited (OIL)

Oil India Private Limited was incorporated on 18th February 1959, to expand and develop the newly discovered oil fields of Naharkatiya and Moran in Assam.
In 1961, it became a joint venture company of the Government of India and Burmah Oil Company Limited, UK.
In 1981, OIL became a wholly owned Government of India enterprise.
Besides having a Pan-India presence, OIL has Participating Interest (PI) in blocks in eight countries overseas viz Russia, USA, Venezuela, Mozambique, Nigeria, Gabon, Bangladesh & Libya.

Chairman and Managing Director : Dr Ranjit Rath

About Maharatna

The Maharatna Scheme was introduced for Central Public Sector Enterprises (CPSEs) by the government of India in 2010 , in order to empower mega CPSEs to expand their operations and emerge as global giants.

Central Public Sector Enterprises (CPSEs are those companies which are owned by the government of india.

Eligibility Criteria for Maharatna status

The CPSEs meeting the following criteria are eligible to be considered for grant of Maharatna status.

It is presently have 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.

Benefits of being a Mahartana

Maharatna status grants a company considerable financial and administrative autonomy .
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 crores in one project.
The Board can also structure and implement schemes relating to personnel and Human Resource Management and Training.
The company can also enter into technology Joint Ventures or other strategic alliances.