New Delhi: The Oil and Natural Gas Commission (ONGC), one of India's biggest profit-making PSUs, is likely to lose its Navratna status.
According to the Petroleum Ministry, the ONGC has not signed the performance MOU for the current fiscal year.
The Petroleum Ministry has sought a clarification from the Department of Public Enterprises (DPE) on whether the ONGC's Navratna status can be withdrawn.
Petroleum Secretary S C Tripathi wrote to the DPE suggesting ONGC's Navratna status withdrawn for its refusal to sign a performance MOU.
This is the latest twist in the spat between the Petroleum Minister Manishankar Aiyar and the ONGC Chairman, Subir Raha.
However, the ONGC said it has apparently signed a performance MOU.
The MOU is the condition for a grant of Navratna status.
Earlier, there was a confrontation between the ONGC and the Petroleum Ministry on the appointment of an additional government director on ONGC board.
The ministry wanted to increase the number of government directors on ONGC board in clear violation of SEBI listing norms and DPE guidelines and was forced to retreat.
The Navratna status gives a company substantial power to make an independent investment decision and functional autonomy.
All Navratna PSUs signs MOU with the government every year, setting its physical and financial targets.
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