(a) whether the Government has formulated any guidelines for the Public Sector Undertakings (PSUs)
entering into Joint Venture (JV) agreements with the private enterprises;
(b) if so, the details thereof;
(c) whether these guidelines vary for Miniratna, Navratna and Maharatna companies; and
(d) if so, the cases in which the approval of the Cabinet is necessary for such a JV between a PSU and a private party?
THE MINISTER OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI PRAFUL PATEL)
(a) and (b): The Department of Public Enterprises, Government of India has issued guidelines delegating powers to the Boards of Maharatna, Navratna and Miniratna Central Public Sector Enterprises (CPSEs) for making equity investments to establish joint ventures (JVs) within the laid down limits and subject to certain conditions.
(c): Yes, Madam. The Boards of Maharatna, Navratna, Miniratna Category I and
Miniratna Category II CPSEs have been empowered to make equity investments to
establish financial joint ventures (JVs) subject to the ceiling of 15% of net worth of the
concerned CPSE in one project limited to a ceiling of Rs.5,000 crore, Rs. 1,000 crore, Rs.
500 crore and Rs. 250 crore for Maharatna, Navratna, Miniratna Category I and
Miniratna Category II CPSEs respectively. The overall ceiling on such investments in
all projects put together is 30% of the net worth in all these cases.
(d): Joint venture proposals of Mahartana, Navratna and Miniratna CPSEs beyond their respective delegated
powers require the approval of the Cabinet.