The Cabinet approved a new policy allowing the acquisition of raw material assets outside India by state-owned companies with a three-year record of making profits, delegating moÂre powers for such buyouts to the boards of maharatna and navaratna public sector companies. Navaratnas and the bigger maharatnas are profitable state-owned companies. Those conferred the status have more financial autonomy than other state-owned companies, giving them the freedom to comÂpete on an equal footing with private sector and global competition.
The decision will allow them to acquire energy assets abroad without government reference. While navaratna firms will now be able to invest up to Rs 3,000 crore in such assets abroad without needing government approval, for maharatna firms, the limit has been raised to Rs 5,000 crore. The limit for both is currently Rs 1,000 crore.
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