BPCL to join the select group of Maharatna PSUs

BPCL CMD S Varadarajan

COME March next year and the second largest state-owned refiner Bharat Petroleum Corporation (BPCL) will get the coveted Maharatna status. Thus, the PSU will join the select group of seven Central Public Sector Enterprises (CPSEs), reports a leading daily. Falling crude oil prices and reduced losses are likely to add significantly to BPCL's profit.
With reduced debts too, BPCL plans...
to invest Rs 1 lakh crore in the next five years,.
BPCL's CMD S Varadarajan said, "The idea is to achieve the Maharatna status by posting superior profits in excess of Rs 5,000 crore by the end of this fiscal. With good profits, we have drawn a five-year (2016-2021) roadmap known as project 'Sankalp' to double our investments to Rs 1 lakh crore in next five years from Rs 50,000 crore spent in the last five years."
A company needs average three years' annual net profit in excess of Rs 5,000 crore, average annual net worth of Rs 15,000 crore for three years and average annual turnover of Rs 25,000 crore for three years to get the Maharatna status.
With Maharatna tag, BPCL will race ahead of its peer HPCL in the race as the status will help BPCL to take investment decisions of up to Rs 5,000 crore, or be free to decide on investments of up to 15% of its net worth in a project without seeking the government's permission.
A major share of the total investments, or Rs 40,000 crore, is proposed to be used to expand BPCL's refining capacity to 55 million tonnes per annum (mtpa) from 30 mtpa now. The company proposes to scale up its Bina refining capacity to 15 mtpa in phases from 6 mtpa now, Kochi refining capacity to 17 mtpa, Mumbai refining capacity to 14 mtpa and Numaligarh refining capacity to 9 mtpa.
Another Rs 25,000 crore is proposed to be invested in the upstream assets, primarily in its discovered oil field in Brazil and gas block in Mozambique with reserves of 75 trillion cubic feet (tcf) of gas reserves. Rest Rs 35,000 crore will be spent to scale up its marketing infrastructure, city gas distribution business and setting up a global presence in the petroleum product marketing space.
BPCL is a Fortune 500, leading Navratna PSU in the exciting and dynamic energy sector engaged in Refining, Marketing and Distribution of Petroleum products and in exploration of Oil/Gas. BPCL group achieved a gross revenue of Rs. 2,58,731.09 cr from Operations for the year 2014-15.
Currently, there are seven Maharatna PSUs. They include: Bharat Heavy Electricals Limited (BHEL), Coal India Limited (CIL), GAIL (India) Limited, Indian Oil Corporation Limited (IOCL), NTPC Limited, Oil & Natural Gas Corporation Limited (ONGC) and Steel Authority of India Limited (SAIL).
The CPSEs fulfilling the following criteria are eligible to be considered for grant of Maharatna status.
(i) Having Navratna status.
(ii) Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations.
(iii) Average annual turnover of more than Rs. 25,000 crore, during the last 3 years.
(iv) Average annual net worth of more than Rs. 15,000 crore, during the last 3 years.
(v) Average annual net profit after tax of more than Rs. 5,000 crore, during the last 3 years.
(vi) Should have significant global presence/international operations.