Once giant, many public sector units including SAIL, are fast turning into a dwarf. In a bid to save ‘Maharatna’ status of many PSUs and investors’ sentiment the Modi Government is all set to revise the financial parameters and performance parameters shortly.
Many PSUs are facing the real risk of losing its Maharatna status, having breached the mandatory average (of three consecutive years) net-profit figure of Rs 5,000 crore to retain the status. Apart from SAIL many other public sector giants are playing on the margins to save its prestigious Maharatna status.
Hit by the double whammy of declining order book and margin, net profit of some ‘Maharatna’ PSUs in the last few years has nose-dived. Keeping in view the above parameter SAIL is on the brink of losing the ‘Maharatna’ status. So far as BHEL is concerned; from a healthy Rs 6,615 crores in FY 2012-13, it plummeted about 45 per cent to Rs 3,503 crores in FY 2013-14; and from there it sunk about 100 per cent to Rs 1,450 crores in FY 2014-15. Though the appointment of Atul Sobti as next CMD has sparked-off optimism for a better financial future but it will take time for Sobti to address the fast declining financial health of BHEL.
Many other public sector giants are playing on the margins to save its prestigious Maharatna status so has the government started taking moves to revise the parameters so as to save the investors sentiment.
(Editor-in-chief: Rakesh Ranjan)