New Delhi: State-owned Rashtriya Chemicals and Fertilizers is likely to get the 'Navaratna' status this year, a move that will provide it greater financial autonomy.
Replying to shareholders' queries at the 37th Annual General Meeting, RCF Chairman and Managing Director R G Rajan said: "The company is expected to get the Navaratna status by the end of December, 2014".
According to the latest list of the Department of Public Enterprises, there are 17 PSUs which are accredited with the 'Navaratna' status including Bharat Electronics Ltd and Engineers India Ltd.
According to the DPE guidelines, Navaratna PSUs can decide on their own on investment of 30 per cent of their networth in projects in India or abroad. Besides, the board of directors of these PSEs have the powers for mergers and acquisitions, subject to certain conditions.
The aim of having categorised some PSUs as Navaratnas was to help them emerge as global players.
RCF, which already has the 'Miniratna' status has already made presentation before the DPE, and is likely to make one final presentation in the coming days, sources added.
The Navaratna status is presently subject to the condition that these PSUs shall not depend up on budgetary support or government guarantees.
Wherever the government guarantee is required under the standard stipulations of external donor agencies, it may be obtained from the Ministry of Finance via the administrative Ministry. Such Government guarantee will not affect the Navratna status.
The government plans to divest at least 5 per cent stake in RCF in 2015-16.
RCF had reported net profit of Rs 83.95 crore for the first quarter ended on June 30, on account of higher income.
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