REC becomes the 12th ‘Maharatna’ CPSE

REC becomes the 12th ‘Maharatna’ CPSE – The Department of Department of Public Enterprises granted the status of a ‘Maharatna’ Central Public Sector Enterprise (CPSE) to the Rural Electrification Corporation (REC) on 22 September 2022. Rural Electrification Corporation (REC)is the 12th CPSE to be granted Maharatna status.

• REC completed this feat owing to its adaptability, resilience, and consistent performance even during the global covid-19 pandemic.

About REC (Rural Electrification Corporation):

• Rural Electrification Corporation is a Non-Banking Finance Company (NBFC) which functions under the Union Ministry of Power.
• REC was founded in 1969 and it aims to focus on Power Sector Financing and Development across India.
• Its headquarters is located in New Delhi.

What is Maharatna CPSE ?

• In 2010, The govt of India introduced Maharatna Scheme for Central Public Sector Enterprises (CPSEs), aimed at empowering mega CPSEs to expand their operations and emerge as global giants.
• Central Public Sector Enterprises (CPSEs) are those companies which are managed by the government of India.

Eligibility Criteria for grant of Maharatna status:

The CPSEs meeting can be eligible a for grant of Maharatna status through the following criteria.

• Having Navratna status;
• Should be listed on the Indian stock exchange with minimum prescribed public shareholding under SEBI regulations;
• Should be an average annual turnover of over Rs. 25,000 crores during the last 3 years;
• Should be an average annual net worth of over Rs. 15,000 crores during the last 3 years;
• Should be an average annual net profit after tax of over Rs. 5,000 crores during the last 3 years;

Benefits of being a Maharatna:

• A company gets considerable financial and administrative autonomy after granting Maharatna status.
• The Board of a ‘Maharatna’ CPSE can invest to undertake financial joint ventures and wholly-owned subsidiaries and undertake mergers and acquisitions in India.
• Can structure and implement schemes relating to personnel and Human Resource Management and Training.
• Can join into technology Joint Ventures or other strategic alliances.

Maharatna CPSE List:

• Bharat Heavy Electricals Limited
• Bharat Petroleum Corporation Limited
• Coal India Limited
• GAIL (India) Limited
• Hindustan Petroleum Corporation Limited
• Indian Oil Corporation Limited
• NTPC Limited
• Oil & Natural Gas Corporation Limited
• Power Finance Corporation
• Power Grid Corporation of India Limited
• Rural Electrification Corporation
• Steel Authority of India Limited

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