In a significant move for the public sector, Oil India Ltd (OIL) has been upgraded to Maharatna status. This upgrade enhances the company's operational and financial autonomy, allowing it to make independent decisions and engage in investment activities with greater freedom.
Maharatna status is a prestigious designation awarded to select Central Public Sector Enterprises (CPSEs) in India. This status provides companies with greater operational flexibility and financial independence, enabling them to perform better in a competitive environment.
The upgrade to Maharatna status signifies that OIL will now have enhanced capabilities in terms of investments, setting up joint ventures, and making crucial financial decisions. This increased autonomy is expected to propel the company towards achieving its business objectives more effectively.
While both Maharatna and Navratna statuses offer autonomy, Maharatna status provides a higher level of operational and financial freedom. Companies with Maharatna status can make larger investments without government approvals, while Navratna firms have limited powers in this regard.
As of now, India has 14 Navratna CPSEs. These companies enjoy a degree of operational and financial independence but do not possess the same level of autonomy as Maharatna companies.
To qualify for Maharatna status, a CPSE must meet specific criteria. This includes having a Navratna status, a minimum net worth, and a robust performance record based on various financial parameters.
In the financial year 2022-23, ONGC Videsh registered an impressive turnover of ₹11,676 crore and a net profit of ₹1,700 crore. This performance reflects the company's strong operational capabilities and strategic initiatives.
Q1. What does Maharatna status mean for Oil India Ltd?
Answer: Maharatna status provides Oil India Ltd with increased operational and financial autonomy, allowing for independent decision-making and enhanced investment capabilities.
Q2. How many Maharatna companies are there in India?
Answer: Currently, India has 13 Maharatna companies, including the newly upgraded Oil India Ltd.
Q3. What are the advantages of Maharatna status?
Answer: Maharatna status allows companies to make significant investments independently, enter joint ventures, and operate with greater flexibility and prestige in the market.
Q4. How does Maharatna status differ from Navratna status?
Answer: Maharatna status offers more operational and financial freedoms than Navratna status, enabling greater autonomy in investment and business decisions.
Q5. What factors determine the Maharatna designation?
Answer: The designation is based on a company's performance metrics, including net worth, profit, and operational efficiency, alongside possessing Navratna status.
Question 1: What is the primary benefit of Maharatna status for Oil India Ltd?
A) Limited operational freedom
B) Increased investment autonomy
C) Reduced market recognition
D) None of the above
Correct Answer: B
Question 2: How many Maharatna companies exist in India as of 2023?
A) 10
B) 11
C) 12
D) 13
Correct Answer: D
Question 3: Which status provides greater autonomy, Maharatna or Navratna?
A) Maharatna
B) Navratna
C) Both are equal
D) Neither
Correct Answer: A
Question 4: What was ONGC Videsh's turnover for 2022-23?
A) ₹10,000 crore
B) ₹11,676 crore
C) ₹12,500 crore
D) ₹13,000 crore
Correct Answer: B
Question 5: What is one criterion for a CPSE to achieve Maharatna status?
A) High market share
B) Minimum net worth
C) Limited operational freedom
D) None of the above
Correct Answer: B
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