Navratnas, Maharatnas and Miniratnas

The Public Sector Enterprises are run by the Government under the Department of Public Enterprises of Ministry of Heavy Industries and Public Enterprises. The government grants the status of Navratna, Miniratna and Maharatna to Central Public Sector Enterprises based upon the profit made by these CPSEs. The Maharatna category has been the most recent one since 2009, other two have been in function since 1997.

The Maharatna Status

The Maharatna PSUs are chosen from those PSUs who holds the status of Navratnas and must be listed on the Indian stock exchange fulfilling the minimum prescribed public shareholding according to the SEBI regulations. The following conditions must be satisfied in order to get Maharatna status:

• The Average annual turnover of the PSU during the last 3 years is more than Rs. 25,000 crore.
• The Average annual net worth during the last 3 years is more than Rs. 15,000 crore.
• The Average annual net profit after tax during the last 3 years is more than Rs. 5,000 crore.
• The company should have the significant global presence or international operations.

There are 7 Maharatna CPSEs currently, namely:

1. Bharat Heavy Electricals Limited
2. Coal India Limited
3. GAIL (India) Limited
4. Indian Oil Corporation Limited
5. NTPC Limited
6. Oil & Natural Gas Corporation Limited
7. Steel Authority of India Limited

The Navratne Status

• The company must have ‘Miniratna Category – I‘ status along with a Schedule ‘A’ listing.
• It should have at least 3 ‘Excellent’ or ‘Very Good’ Memorandum of Understanding (MoU) during the last five years.
• Along with the above, it should also have a composite score of 60 or above out of possible 100 marks in the 6 selected performance parameters:-
  1. Net Profit to Net Worth (Maximum: 25)
  2. Manpower cost to cost of production or services (Maximum: 15)
  3. Gross margin as capital employed (Maximum: 15)
  4. Gross profit as Turnover (Maximum: 15)
  5. Earnings per Share (Maximum: 10)
  6. Inter-Sectoral comparison based on Net profit to net worth (Maximum: 20)
  7. There are 17 Navratna CPSEs in the country

The Miniratnas Status

• The CPSEs that have shown profits in the last continuous three years and have positive net worth can be considered eligible for grant of Miniratna status.
• Presently, there are 71 Miniratnas in total.
• The Miniratnas are divided into two categories (I and II).

Category One: The PSUs that have made profits in the previous three years or have generated a profit RS 30 crore or more in one of the preceding three years.

Category Two: The PSUs that have made profits in the preceding three years and have a positive net worth in all three preceding years.