BEL, Hal, PFC gets navratna status, Guidelines released

New Delhi, June 22 (UNI) The navratna status was today conferred on three more Central Public Sector Enterprises (CPSEs)-- Bharat Electronics Limited (BEL), Hindustan Aeronautics Limited (HAL) and Power Finance Corporation (PFC)-- taking the number of such CPSEs to 12.

The navratna status would empower Boards of Directors of these CPSEs to exercise greater autonomy and powers and thereby substantially improve their performance.

Besides, these CPSEs can improve their activities to become global giants.

While granting the status to the three CPSEs, Finance Minister P Chidambaram also released the Guidelines on Corporate Governance for CPSEs, 2007.

The navratna status certificates were received by BEL CMD V V R Shastri, HAL MD A K Saxena and PFC CMD V K Garg.

Heavy Industries and Public Enterprises Minister Santosh Mohan Dev said four more CPSEs-- National Aluminium Company Limited, National Mineral Development Corporation, Power Grid Corporation of India, and Rural Electrification Corporation-- would be granted navratna status as soon as they fulfilled the requirement of having non-official directors on their Boards.

Mr Dev said his Ministry would continue to take pro-active steps to make CPSEs strong and effective.

The Guidelines cover issues such as composition of Board of Directors, setting up of audit committees, role and powers of audit committees, and matters relating to subsidiary companies, disclosures, accounting standards, risk management, compliance and schedule of implementation.

The Guidelines will be for an experimental period of one year, and suitable adjustments would be made in them in the light of experience gained.

Proper implemention of the Guidelines is expected to facilitate protection of interests of shareholders and other stakeholders.

UNI