Oil India gets Maharatna tag, ONGC Videsh upgraded to Navaratna
Oil India has achieved Maharatna status, while ONGC Videsh is now a Navratna company. This grants Oil India's board increased financial decision-making powers and gives ONGC Videsh more financial and operational autonomy. Oil India is the 13th Central Public Sector Enterprise (CPSE) to be awarded the Maharatna tag. Meanwhile, ONGC Videsh is the 15th Navaratna company in the country.
How does a company gain Maharatna status?
For a company to get Maharatna status, it should fulfill as many as six conditions, including having an average annual turnover of over Rs. 25,000 crore during the last three years. Oil India recorded a net profit of Rs. 9,854 crore for the year 2022-2023, while ONGC Vidhesh's net profit during the same time was Rs. 1,700 crore.
Maharatna and Navaratna statuses offer enhanced powers
The main difference between the two statuses is the benefits they offer. Maharatna companies can incur capital expenditure without any monetary ceiling, while Navratna companies can invest up to Rs. 1,000 crore or 15% of their net worth on a single project without government approval. Oil India and ONGC Videsh operate under the Ministry of Petroleum and Natural Gas.
