Maharatna and Navratna Companies in India 2020


Maharatna and Navratna Companies are the statuses given to Indian companies that earn through ideal performance. According to recent ratings, we have 10 Maharatna, 14 Navratna, and 74 Miniratnas companies. Let’s discuss the need and criteria for defining Maharatna and Navratna Companies in India.

What is Public Sector Undertaking?

state-owned enterprise (SOE) or government-owned enterprise (GOE) is a business enterprise where the government or state has significant control through full, majority, or significant minority ownership. A state-owned enterprise in India is called a public sector undertaking (PSU) or a public sector enterprise.

Those companies are owned by the union government of India or one of the many state or territorial governments or both. The company stock needs to be majority-owned by the government to be a PSU. PSUs strictly may be classified as central public sector enterprises (CPSUs, CPSEs) or state-level public enterprises (SLPEs).

Background of Maharatna and Navratna Companies

When India achieved independence in 1947, it was primarily an agricultural country with a weak industrial base. There were only eighteen Indian Ordnance Factories in the country which the British had established for their own economic interest. The national consensus was in favor of the rapid industrialization of the economy which was seen as the key to economic development, improving living standards and economic sovereignty.

The major consideration for the setting up of PSUs was to accelerate the growth of core sectors of the economy, to serve the equipment needs of strategically important sectors, and to generate employment and income.

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Birth of Maharatna and Navratna Companies

Certain public sector undertakings have been awarded additional financial autonomy, that has comparative advantages”, giving them greater autonomy to compete in the global market. Financial autonomy was initially awarded to nine PSUs as Navratna status in 1997. Originally, the term Navaratna meant a talisman composed of nine precious gems.

In 2010, the government established the higher Maharatna category, which raises a company’s investment ceiling from Rs. 1,000 crore to Rs. 5,000 crore. The Maharatna firms can now decide on investments of up to 15 percent of their net worth in a project while the Navaratna companies could invest up to Rs 1,000 crore without explicit government approval. Two categories of Miniratnas afford less extensive financial autonomy.

Criteria For Getting A Maharatna

Below are the crucial points for determining the Maharatna status of the company:

  • Should be listed company in the stock exchange
  • Should have an average turnover of  Rs.25,000cr.
  • The average net profit of the company should be Rs.50,000cr.
  • The average net worth of the company has to be Rs. 15,000cr in the last three years
  • Should already by a Navaratna PSU to be awarded the Maharatna

Criteria For Getting A Navaratna status

Given below are the criteria an organization needs to get the Navratna Status:

  • Should already have Miniratna status
  • Also has to have a rating of either very good or excellent for three of the five years that are taken into consideration
  • There are parameters for which the company will be scored, and an ideal score of 60 and above can avail the Navaratna title. The parameters include the net profit and net worth ratio, the earnings that are gained per share, the profit that is earned before the taxes and interest are deducted compared to the turnover of the company, the workforce cost compared to the cost involved in the total cost of production or services, the calculation of the profit before subtracting the depreciation, the interest, and taxes that have to be paid as compared to the capital invested and finally the intersectoral performance is also gauged to score the company.

Criteria For Getting A Miniratna

There are only two conditions that the organization needs to earn the Miniratna status:

  • The PSUs which happen to make profits three years in a row
  • And the company should have a positive net worth.

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List Of Maharatna & Navratna Companies

Given below is the List Of Maharatna & Navratna Companies:

Maharatna Companies in IndiaNavratna companies in India
Bharat Heavy Electricals LimitedBharat Electronics Limited
Bharat Petroleum Corporation LimitedContainer Corporation of India Limited
Coal India LimitedHindustan Aeronautics Limited
GAIL India LimitedMahanagar Telephone Nigam Limited
Hindustan Petroleum Corporation LimitedNational Aluminium Company Limited
Indian Oil Corporation LimitedNBCC India Limited
NTPC LimitedNMDC limited
Oil and Natural Gas Corporation LimitedNLC India Limited
Power Grid Corporation of India LimitedOil India Limited
Steel Authority of India LimitedPower Finance Corporation Limited
Rashtriya Ispat Nigam Limited
Rural Electrification Corporation Limited
Shipping Corporation Of India Limited
Engineers India Limited

Since there are 74 Miniratnas, it would be a good way to introduce the first ten in the list

  • Airport Authority of India
  • Antrix Corporation Limited
  • Balmer Lawrie & Co. Limited
  • Bharat Coking Coal Limited
  • Bharat Dynamics Limited 
  • BEML Limited
  • Bharat Sanchar Nigam Limited
  • Bridge and Roof Company India Limited
  • Central Warehousing Corporation
  • Central Coalfields Limited

And the list goes on, the list above is for category 1 and  there are other companies which come in category 2 some of them are

  • Artificial Limbs Manufacturing Corporation of India
  • Bharat Pumps & Compressors Limited
  • Broadcast Engineering Consultants India Limited
  • Central Railside Warehouse Company Limited
  • Engineering Projects India Limited

To sum up, we got an idea of how long the list of Public sector companies is well recognized and went through the list of Maharatna and Navratna companies.