At least three central public sector enterprises (CPSEs)–Oil & Natural Gas Corporation, NTPC Ltd and Steel Authority of India Ltd?now have much-needed leeway in their overseas ventures with the Cabinet on Thursday according them Maharatna status. This obviates prior government approval for foreign investments up to Rs 5,000 crore.

At present, the 18 Navaratnas are free to invest up to Rs 1,000 crore overseas for joint ventures or through wholly-owned subsidiaries. But any investment beyond that needs prior Cabinet approval.

According to criteria approved by the Cabinet, the Maharatna tag will be granted to listed Navaratna CPSEs with an average annual turnover of more than Rs 25,000 crore, net profit after tax of Rs 5,000 crore and net worth of Rs 15,000 crore in the last three years. ONGC, NTPC and SAIL are three companies that readily meet the criteria.

Maharatna firms are free to forge joint ventures or create a subsidiary in India or overseas, provided not more than 15% of the firm?s net worth is invested in a single project. Also, such an investment should not result in a CPSE?s total equity in JVs exceeding 30% of its net worth.

?The main objective of the Maharatna scheme is to empower large CPSEs to expand their operations and emerge as global giants,? information & broadcasting minister Ambika Soni told reporters.

?The proposed higher category will act as an incentive for other Navaratna companies, provide brand value and facilitate delegation of enhanced powers,? she added.

?The move will be of immense help to companies like SAIL in the acquisition of raw materials abroad. For companies like us, long-term security of raw material resources is a must and the enhancement of powers will help us achieve it,? SAIL chairman SK Roongta told FE.

ONGC chairman RS Sharma agreed. ?This is a welcome, long-awaited decision. It shows commitment by the government to transform Navaratna PSUs into real global players. This will enable these companies to take decisions on investment, M&As and forming joint ventures to push actual business growth.?

The BSE PSU index, which consists of 48 state-run companies, on Thursday rose 0.37% in a bullish market. Shares of ONGC rose 1.62%, while those of SAIL moved up 0.44%. NTPC closed at Wednesday?s level of Rs 229.9 a share.

Companies like Bhel, HAL, BPCL and HPCL, each having an average net profit below Rs 3,500 crore, are learnt to have already applied to their administrative ministries for Maharatna status.