The government on Tuesday provided enhanced financial autonomy to two public sector units -- Bridge and Roof Company and Bharat Pumps and Compressors -- by granting them the 'mini-ratna' status.
With mini-ratna status to Bridge and Roof (B&R) and Bharat Pumps and Compressors (BPCL), the number of such companies under the administrative Ministry of Heavy Industries and Public Enterprises has increased to seven.
Kolkata headquartered B&R has been given mini-ratna category-I status while Allahabad based BPCL has been placed under category - II, Minister of Heavy Industries and Public Enterprises Vilasrao Deshmukh told reporters here.
Deshmukh said the government was committed to the growth of public sector enterprises and has no plans to sell or close sick units.
Category-I mini-ratna firms have the power to incur capital expenditure on new projects, modernisation, purchase of equipment without government approval up to Rs 500 crore (Rs 5 billion) while in the category-II companies have financial autonomy to spend up to Rs 250 crore (Rs 2.5 billion).
B&R is a multi-disciplinary engineering and construction firm which provides services to various civic authorities. BPCL caters to the need of companies in the oil and gas sector.
Deshmukh said with enhanced powers, these two companies can also explore options of forming joint ventures and subsidiaries.
The other five mini-ratna companies under the ministry are -- Rajasthan Electronics and Instrument, HMT (International), Hindustan Paper Corporation, Engineering Projects (India) and Hindustan Newsprint Ltd.
