Companies News
The department of public enterprises (DPE) is in the process of conferring Maharatna status to Mumbai-based Hindustan Petroleum Corporation (HPCL).If cleared, the Oil and Natural Gas Corporation (ONGC) arm will become the first subsidiary company of an existing Maharatna to get into this superior league among government-owned entities.
A company with this formal status gets the authority for equity investment to establish financial joint ventures and wholly owned subsidiaries, and to undertake mergers and acquisitions in India or abroad. Subject to a ceiling of 15 per cent of its net worth, limited to Rs 5,000 crore in one project.
Eight state-run companies are now in this league — ONGC is one. Indian Oil Corporation, GAIL, Bharat Petroleum Corporation, Coal India, Bharat Heavy Electricals, NTPC and Steel Authority of India are the others.
An informed sources said petroleum minister Dharmendra Pradhan had written to counterpart Anant G Geete at the ministry of heavy industries and public enterprises (HI & PE), recommending the status for HPC. Following this, DPE has sought ONGC's opinion and asked the ministry of petroleum if here were any technical or legal issues in the way of bestowing the to a subsidiary of a company.
HPC chairman and managing director M K Surana did not mention to a query from Business Standard in this regard.
Chart If its comes through, the company's board of directors gets more powers to raise debt from capital markets, home and abroad (the latter subject to approval of the Reserve Bank and/or the department of economic affairs...Read More
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