(a) whether the Government has formulated any guidelines for the PSUs entering into Joint
Venture agreements with the Private Enterprises;
(b) if so, the details thereof;
(c) whether these guidelines differ for Mini-Ratna, Nav Ratna and Maharatna companies;
(d) if so, the details thereof;
(e) whether the approval of the Cabinet is necessary for such Joint Venture between a
PSU and a private party; and
(f) if so, the details thereof;?
THE MINISTER OF STATE FOR HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI A. SAI PRATHAP)
(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) and (d) : 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.
(e) and (f) : Joint venture (JV) proposals of Mahartana, Navratna and Miniratna CPSEs, within
their respective delegated powers, does not require the approval of the Cabinet.