India’s Finance Ministry Grants Maharatna and Navratna Status to Oil Sector Giants, Oil India and ONGC Videsh

In a significant development, India’s Finance Ministry has announced the elevation of two key players in the country’s oil sector. Oil India, a stalwart in the industry, has been accorded the distinguished Maharatna status, a reflection of its remarkable accomplishments. Meanwhile, ONGC Videsh, renowned for its exploration of hydrocarbon reserves beyond national boundaries, has been elevated to the esteemed Navratna category. These advancements mark a pivotal moment, empowering both companies with enhanced autonomy for strategic financial decisions and collaborative endeavors.

Oil India, tracing its origins back to the discovery of oil in India in 1889, has now joined the league of Maharatna CPSEs. The 13th company to achieve this distinction, Oil India’s noteworthy annual turnover of Rs 41,039 crores and a net profit of Rs 9,854 crores for the fiscal year 2022-23 underscore its financial prowess. Operating under the aegis of the Ministry of Petroleum and Natural Gas, Oil India stands proudly as the nation’s second-largest oil and gas enterprise.

ONGC Videsh, an integral part of the Ministry of Petroleum and Natural Gas, has been a driving force in expanding India’s hydrocarbon footprint beyond its borders. This elevation to Navratna status, the 14th CPSE to achieve such recognition, underscores the company’s commitment to international exploration, development, and production activities. With an annual turnover of Rs 11,676 crore and a net profit of Rs 1,700 crore in the fiscal year 2022-23, ONGC Videsh continues to exemplify excellence in the global energy arena.

The introduction of the Maharatna status aimed to empower CPSEs to scale up their global operations. Notable companies such as BHEL, Indian Oil, ONGC, BPCL, HPCL, and SAILs have already attained this prestigious recognition. Companies aspiring for Maharatna status must fulfill specific criteria, including holding Navratna status, maintaining substantial annual profits, and demonstrating a significant global presence.

Navratna CPSEs enjoy a range of privileges that amplify their operational capabilities. These benefits encompass the authority to undertake substantial capital expenditures, form technology joint ventures, raise debt from domestic and international markets, and establish financial joint ventures and subsidiaries in India or abroad. These advancements reflect a forward-looking approach, positioning Oil India and ONGC Videsh for continued success on the global stage.

Chairman & Managing Director (CMD) of Oil India Limited: Dr. Ranjit Rath