Encouraged by an overwhelming response to its recent public offer, state-owned Coal India Ltd (CIL) today said it has sent a proposal to the government for the grant of coveted Maharatna status, which will give it greater financial autonomy.
"We have sent the proposal," CIL Chairman Partha S Bhattacharya said, when asked if the company has approached DPE for the award of Maharatna status.
CIL, the world's largest coal-miner with a turnover of Rs 52,000 crore in 2009-10, would be the fifth large PSU to qualify for the coveted status that entitles a state-owned firm a more financial freedom.
The tag would give the CIL board financial authority to pursue more aggressively the plans to acquire mining properties in South Africa, Indonesia, Australia and the US.
The company has recently raised Rs 15,199.44 crore for the government, under the disinvestment programme, through an initial public offer by offloading 10 per cent stake.
A Maharatna PSU can invest up to Rs 5,000 crore in a project independently, while the limit for Navratna companies is Rs 1,000 crore.
A company needs to have a three-year track record of annual net profit of over Rs 5,000 crore, net worth of more than Rs 15,000 crore and turnover of more than Rs 25,000 crore -- besides being listed on stock exchanges -- to be eligible for the Maharatna status.
CIL has had over Rs 5,000 crore profit in past three years in a row.
The government had decided in December last year to give more operational freedom to the top-performing PSUs through the Maharatna scheme.
At present, 16 state-owned firms, including CIL, enjoy the Navratna status.
