Features of Maharatna Companies
- Autonomy: Maharatna status grants these companies greater autonomy in decision-making and operational independence, allowing them to undertake key business initiatives and strategic investments without prior government approval up to a certain limit.
- Financial Flexibility: They have enhanced financial powers, including the authority to make substantial capital expenditures, undertake mergers and acquisitions, and form joint ventures both domestically and internationally.
- Global Reach: Maharatna Companies typically have a significant presence in international markets and engage in global business activities, contributing to India’s economic diplomacy and enhancing its competitiveness on the global stage.
- Strategic Importance: These companies play critical roles in sectors considered vital for the country’s economic growth and national security, such as energy, infrastructure, steel, petroleum, and power generation.
- Performance Criteria: The criteria for granting Maharatna status include factors such as the company’s size (measured by turnover and net worth), profitability, global operations, and adherence to corporate governance norms.
- Prestige and Recognition: Being designated as a Maharatna Company is a prestigious recognition that underscores the company’s leadership position within its industry and its significant contributions to the nation’s development.
Maharatna Companies in India
Maharatna companies in India are a distinct category among Public Sector Undertakings. The term “Maharatna”, which means “a great jewel” in Hindi, highlights the importance of these companies in the national economy and their impact globally. To have the Maharatna status, companies must meet specific criteria set by the Indian government, including already holding Navratna status, being listed on India’s stock exchange with a minimum prescribed public shareholding, and maintaining strong financial performance.
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