Note4Students
From UPSC perspective, the following things are important :
Prelims level: Central Public Sector Enterprise (CPSE) and their Categorization
Mains level: NA
What is the news-
- Grid Controller of India Limited (GRID-INDIA) reached a significant milestone as it was honored with the prestigious status of Miniratna Category-I Central Public Sector Enterprise (CPSE) by the Ministry of Power.
About Grid Controller of India Limited (GRID-INDIA)
- Founding: Established in 2009, GRID-INDIA plays a vital role in ensuring the smooth operation of the Indian Power System.
- Mandate: GRID-INDIA is tasked with overseeing the seamless transfer of electric power within and across regions, facilitating transnational power exchanges, and ensuring reliability, economy, and sustainability in the power sector.
- Regional Load Despatch Centres (RLDCs) and NLDC: GRID-INDIA comprises five RLDCs and the National Load Despatch Centre (NLDC), collectively managing the All India synchronous grid.
- Functions: Managing one of the world’s largest and most intricate power systems, GRID-INDIA handles diverse challenges arising from the integration of power systems, rising energy demands, and the proliferation of Renewable Energy (RE) sources.
What are Central Public Sector Enterprises (CPSEs)?
- CPSEs are companies in which the central government holds a majority stake (usually more than 51%).
- These enterprises operate across various sectors, including manufacturing, infrastructure, energy, telecommunications, and financial services.
- CPSEs are governed by the Department of Public Enterprises (DPE) under the Ministry of Heavy Industries and Public Enterprises.
Within the CPSEs, there are further classifications based on their financial performance, operational autonomy, and strategic importance:
| Maharatna Companies | Navratna Companies | Miniratna Companies | |
| Categories | Single category | Single category | Two categories (Category-I and Category-II) based on the Autonomy |
| Eligibility Criteria | Annual turnover of ₹25,000 crore, net worth of ₹15,000 crore, and net profit of ₹5,000 crore over the last three years | A composite score of at least 60% based on various parameters such as net profit, net worth, total manpower cost, cost of production, PBDIT (Profit Before Depreciation, Interest, and Taxes) to turnover ratio, and other operational and financial parameters. | Satisfactory operational and financial performance, as per government guidelines |
| Operational Autonomy | High degree of operational autonomy and financial powers | Moderate degree of operational autonomy and financial powers | Limited operational autonomy and financial powers |
| Investment Authority | Authority to make strategic investments, undertake mergers and acquisitions, and form joint ventures or collaborations without seeking government approval | Authority to undertake investment decisions, execute projects, and form joint ventures or subsidiaries within prescribed limits without seeking government approval | Authority to make certain investment decisions, incur capital expenditure and undertake expansion projects within prescribed limits without seeking government approval |
| Number of Companies | Limited number of companies (currently 10 Maharatna companies) | Limited number of companies (currently 14 Navratna companies) | Larger number of companies (over 70 Miniratna companies) |
| Examples | Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation (IOC), NTPC Limited | Bharat Electronics Limited (BEL), Hindustan Aeronautics Limited (HAL), Bharat Petroleum Corporation Limited (BPCL) | Container Corporation of India (CONCOR), National Aluminium Company Limited (NALCO), Power Grid Corporation of India Limited (POWERGRID) |
PYQ:
2011: Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)?
- The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.
- The Government no longer intends to retain the management control of the CPSEs.
Which of the statements given above is/ are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
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