Saturday 1 October 2011

Government to accord Navratna tag to Engineers India

The government is likely to accord the coveted Navratna status to Engineers India Ltd (EIL), which will provide the company greater operational autonomy.

"The company's application for the Navratna status has been accepted by the Department of Public Enterprises (DPE)," a DPE official told PTI. He said the decision is expected in a month.

It will now be considered by a committee headed by Cabinet Secretary Ajit Kumar Seth.

The company, which is listed on the Bombay Stock Exchange, meets all the financial and other criteria.

The criteria for granting the Navratna status is based on a composite score system.

The PSUs are accorded scores on different performance parameters such as net profit, net worth and manpower cost to the total cost of production.

EIL, which was set up in 1965, provides engineering and related technical services for petroleum refineries and other industrial projects.

At present, there are 16 Navratna companies including Bharat Electronics Limited, Bharat Heavy Electrical Limited, GAIL and Rashtriya Ispat Nigam Limited.

Besides, there are five Maharatnas - ONGC , NTPC , IOC , SAIL and CIL. These PSUs enjoy a higher level of autonomy.

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