NEW DELHI: In order to give more operational flexibility to Maharatna and Navratna companies, that will help them achieve their annual targets, the heavy industries ministry will soon come out with fresh guidelines. Also, it will provide a review and a peak mechanism for Maharatna and Navratna companies for the annual targets fixed by them.
At present, there are 5 Maharatna companies — ONGC, NTPC, IOC, SAIL and CIL and 16 Navratna companies, including BHEL and GAIL.
Heavy industries and public enterprises minister Praful Patel met the heads of Maharatna and Navratna companies on Wednesday. “The MoUs are fixed, but at times they are unrealistic. Targets cannot be met…. Maharatna and Navratna companies need more operational flexibility, so guidelines will have to be brought in place,” Patel said after the meeting.
Talking about the need to review the current MoU system, Patel said currently the annual targets system does not factor issues and fluctuations like, prices of petroleum products and difficulties faced by power and coal sectors.
“For Navratna and Maharatna companies, we propose to have a review and appeal mechanism for the annual targets fixed by them,” Patel said.
PSUs like Coal India, which accounts for 80% of the domestic production, is facing problems like less production on account of various regulatory hurdles including non-clearance to its expansion projects. This is also hurting power companies including NTPC who are unable to procure coal leading to power shortage.
The MoUs are signed between the Central Public Sector Enterprises (CPSEs) and the administrative ministries/departments.
It is facilitated by the Department of Public Enterprises (DPE).