NEW DELHI: In a move towards giving more operational autonomy to public sector companies, the Government on Monday doubled their capacity to make investments without seeking clearance from administrative ministries.

Profit-making companies falling under the `navaratna' category can invest up to Rs. 1,000 crores in joint ventures and incur capital expenditure. `Mini-ratna-I' and `mini-ratna-II' firms can go up to Rs. 500 crores and Rs. 250 crores. The boards of the PSUs can go ahead with mergers and acquisitions independently subject to these ceilings. The decisions were taken in fulfilment of the commitments made under the national Common Minimum Programme of the Government, Information and Broadcasting Minister Jaipal Reddy said after a Cabinet meeting.

Under the new guidelines for "empowerment of central public sector enterprises," the ceiling for investment by profit-making companies in joint ventures and subsidiaries has been increased from 15 to 30 per cent of the net worth of the PSUs. For the top `mini-ratnas,' the capital expenditure limit without government approval has been increased to Rs. 500 crores or equal to their net worth, whichever is less.

For `mini-ratnas' in the second category, the limit has been increased to Rs. 250 crores or 50 per cent of the net worth.

For other profit-making PSUs, the capital investment limit without government clearance has been increased to Rs. 150 crores or 50 per cent of their net worth, whichever is less.

An official statement says the `navratnas' and `mini-ratnas' will be able to establish joint ventures with investments up to 15 per cent of their net worth in one project, subject to a limit of Rs. 1,000 crores for a `navratna,' Rs. 500 crores for `mini-ratna-I' and Rs. 250 crores for `mini-ratna-II.' In all, the CPSEs will be allowed to invest up to 30 per cent of their net worth in joint ventures and subsidiaries as against 15 per cent earlier.

The boards of PSUs have now been empowered to delegate powers of appointments, transfer and posting of below board-level executives to a sub-committee in the company or to an executive. They have also been given the powers to go ahead with mergers and acquisitions within the financial limits set for floating joint ventures and subsidiaries. Besides, the Cabinet approved the constitution of an inter-ministerial committee to assist the Apex Committee for expeditious inclusion and deletion of CPSEs in the `navratna' category. It also decided to relax conditions related to government guarantee, wherever required.

Under the new guidelines, PSU chief executives can approve business tours abroad of functional directors up to five days in emergency cases under intimation to the administrative ministry.

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