More power to PSUs for overseas buyouts

New Delhi : The government will facilitate faster acquisition of raw material from abroad for those central public sector enterprises (CPSEs) with a track record of netting profit for three consecutive years, according to a new policy which the Union Cabinet approved on Thursday. Maharatna and Navratna PSUs will also get more power for overseas buyouts once the new acquisition policy comes into force.

The policy will pave the way for Navratna firms to invest up to Rs 3,000 crore in such assets without government approval, as against the present limit of Rs 1,000 crore, S Sundareshan, secretary to the department of heavy industries and public enterprises, said here. The policy will facilitate easier acquisition of coal, iron ore and other assets abroad

For Maharatna firms, the limit is Rs 5,000 crore. “The changes will make Indian CPSEs nimble enough to make such acquisitions abroad," he told reporters after the Cabinet meeting.