The Centre will consider granting Maharatna status to a new set of public sector units (PSUs) on Thursday. While Navratna PSUs enjoy autonomous decision-making for investments up to Rs 1,000 crore, Maharatnas will be allowed to invest up to Rs 5,000 crore without the Centre?s permission.

?The guidelines on conferring Maharatna status on central public sector enterprises (CPSEs) is on the Cabinet?s agenda for its meeting on Thursday,? a senior official in the department of public enterprises told FE .

As per the draft guidelines presented before the Cabinet, a CPSE has to be a Navratna and should have an average net profit of at least Rs 5,000 crore in the last 3 consecutive years, besides other qualifications, to be awarded the higher degree of freedom in decision making.

Once the CPSE is given the Maharatna status, it will be able to invest a maximum of Rs 5,000 crore in a joint venture provided its overall investment in such venture is not more than 50% of its total net worth. At present, a Navratna firm can invest Rs 1,000 crore in a joint venture, provided its total investment in all partnership ventures does not exceed 30% of its net worth.

If the draft guidelines are approved by Prime Minister Manmohan Singh the meeting, the Maharatna status could be conferred on Oil & Natural Gas Corporation (ONGC), NTPC Ltd, Steel Authority of India (SAIL) and Indian Oil Corporation (IOC). Average net profit of these firms has been over Rs 5,000 crore in the last three years.

There are 18 navratna PSUs in the country. Besides ONGC, NTPC, SAIL and IOC, the list includes Bharat Heavy Electricals Ltd (Bhel), Bharat Petroleum Corp Ltd (BPCL), Coal India Ltd, Gail (India) Ltd, Hindustan Aeronautics Ltd, MTNL, NMDC, Hindustan Petroleum Corp Ltd (HPCL), National Aluminium Company, ONGC, Power Finance Corp, Power Grid Corporation of India Ltd (PGCIL), Rural Electrification Corp (REC), Shipping Corporation of India, Steel Authority of India (SAIL) and Bharat Electronics Ltd.

Interestingly, companies like Bhel , HAL, BPCL and HPCL, each having an average net profit below Rs 3,500 crore, are understood to have put up applications for the Maharatna status before their administrative ministries.

Unless the proposed guidelines are amended, these firms are unlikely to make the cut.