National Small Industries Corporation (NSIC) may soon get the Mini-ratna I status, which will give the PSU greater financial and functional autonomy, a top official of the company said.
"We expect our administrative ministry, the Ministry of Micro, Small and Medium Enterprises, to soon grant us Mini- ratna I status as the firm meets the eligibility criteria," NSIC Chairman-cum-Managing Director H P Kumar told PTI.
At present, the company enjoys the Mini-ratna II status.
The MSME Ministry has completed the consultation process with the Department of Public Enterprises (DPE) and the proposal to grant the status is at a final stage, he added.
A Mini-ratna I PSU can incur capital expenditure up to Rs 500 crore on new projects, modernisation and purchase of equipment without the government's approval.
For a Mini-ratna II company, the limit is Rs 150 crore.
"It will further empower NSIC to make more investments and expand its operations," Kumar said.
Once the status would be granted, the board of directors will have the authority to further delegate powers relating to human resource management (including appointments, transfer and posting) of below board level executives to sub-committees of the board or to executives of the PSE, as may be decided by the company's board.
The company meets the eligibility criteria in terms of its net profit and net worth.
A firm qualifying for the coveted tag should have made profit in the last three years continuously, besides having a pre-tax profit of Rs 30 crore or more in at least one of the three years.
Also, the company should have a positive net worth during the last three years.
During 2012-13, the company's net profit stood at Rs 76 crore. In 2011-12, the state-owned unit had registered a net profit Rs 41 crore, while in 2010-11 its profit after tax was Rs 29 crore.
As far as the firm's profit before tax is concerned, it stood at Rs 60 crore in 2011-12.
The net worth of the company has also been positive in the last three years.
NSIC has been working towards promotion and fostering growth of MSMEs in the country.