- 1) Headline
- 2) What is Public Sector Undertaking?
- 3) Background of Maharatna and Navratna Companies
- 4) Birth of Maharatna and Navratna Companies
- 5) Criteria For Getting A Maharatna
- 6) Criteria For Getting A Navaratna status
- 7) Criteria For Getting A Miniratna
- 8) List Of Maharatna & Navratna Companies
- 9) Since there are 74 Miniratnas, it would be a good way to introduce the first ten in the list
- 10) Sources
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?
A 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).
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.
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
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.
Given below is the List Of Maharatna & Navratna Companies:
|Maharatna Companies in India||Navratna companies in India|
|Bharat Heavy Electricals Limited||Bharat Electronics Limited|
|Bharat Petroleum Corporation Limited||Container Corporation of India Limited|
|Coal India Limited||Hindustan Aeronautics Limited|
|GAIL India Limited||Mahanagar Telephone Nigam Limited|
|Hindustan Petroleum Corporation Limited||National Aluminium Company Limited|
|Indian Oil Corporation Limited||NBCC India Limited|
|NTPC Limited||NMDC limited|
|Oil and Natural Gas Corporation Limited||NLC India Limited|
|Power Grid Corporation of India Limited||Oil India Limited|
|Steel Authority of India Limited||Power 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.