CPSEs Current Affairs - 2019
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State-run oil marketing company Bharat Petroleum Corporation (BPCL) is all set to become a Maharatna company. Presently it is having Navratna status.
The decision to elevate BPCL to Maharatna status was taken by panel headed by Cabinet secretary and an announcement to this effect will be made soon.
BPCL will be eight Central Public Sector Enterprises (CPSE) to get coveted Maharatna status. The status will enable BPCL Board to get enhanced powers which will help in expansion of its operations, both in India and abroad.
The Government had introduced Navratna scheme, in 1997, to identify CPSEs that had comparative advantages and to support them in their drive to become global giants. The Boards of Navratna CPSEs have been delegated powers in following areas: Capital expenditure, Investment in joint ventures / subsidiaries, Mergers & acquisition and Human resources management, etc.
The “Maharatna” category for CPSEs was introduced in 2009 with objective to empower mega CPSEs to expand their operations and emerge as global giants or become Indian Multinational Companies (MNCs),
At present, there are seven Maharatna companies — Bharat Heavy Electricals (BHEL), Coal India (CIL), GAIL (India), Indian Oil Corporation, NTPC, Oil and Natural Gas Corporation (ONGC) and Steel Authority of India (SAIL). Maharatna and Navaratna state-owned units operate in strategic fields such as coal, petroleum, steel, heavy engineering, telecommunications, power supply and transportation services.
Criteria for Maharatna status
Under government rules, Central Public Sector Enterprises (CPSEs) must fulfill following criteria for grant of Maharatna status.
- Having Navratna status.
- Average annual turnover of more than Rs. 25,000 crore, during last 3 years.
- Average annual net worth of more than Rs. 15,000 crore, during last 3 years.
- Average annual net profit after tax of more than Rs. 5,000 crore, during last 3 years.
- Should have significant global presence and international operations.
- Listed on Indian stock exchange with minimum prescribed public shareholding limit under SEBI regulations.
The Bank Board Bureau (BBB) has recommended that Government should bring in reforms in the compensation process in public sector banks (PSBs) on the lines of Central Public Sector Enterprises (CPSEs).
BBB has suggested compensation reforms in PSBs so that best practices can be introduced ‘on the lines already prevalent in CPSEs.
It will play important role in attracting high-quality talent for non-executive directors and chairmen. It will also maintain a level-playing field with the private sector with respect to role, responsibility and remuneration.
About Bank Board Bureau (BBB)
- BBB is the super authority (autonomous body) of eminent professionals and officials for public sector banks (PSBs). It had replaced the Appointments Board of Government.
- It is set up in April 2016 as part of seven point Indradhanush Mission to revamp the Public Sector Banks (PSBs).
- Functions: Give recommendations to Government for appointment of full-time Directors as well as non-Executive Chairman of PSBs.
- Give advice to PSBs in developing strategies for raising funds through innovative financial methods and instruments to deal with stressed assets.
- Guide banks on mergers and consolidations and also ways to address the bad loans problem and among other issues.
- Composition of BBB: It has three ex-officio members and three expert members, in addition to the Chairman. Former Comptroller and Auditor General (CAG) Vinod Rai is first and incumbent Chairman of BBB.