Public Sector Undertakings in India

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In India a Public Sector Undertaking (PSU) is a government-owned corporation. These companies are owned by the federal Government of India, or one of the many state or territorial governments, or both. The company equity needs to be majority owned by the government to be a PSU. An alternative title for a PSU is a Public Sector Enterprise, where federally owned PSUs are termed Central Public Sector Enterprises (CPSEs) and are administered by the Ministry of Heavy Industries and Public Enterprises.

There are 251 PSU companies in India as of 2012.[citation needed]

Financial Autonomy[edit]

Various PSUs have been awarded additional financial autonomy. These companies are "public sector companies that have comparative advantages", giving them greater autonomy to compete in the global market so as to "support [them] in their drive to become global giants".[1]

The level of financial autonomy is currently divided into three categories:

  • Maharatna
  • Navratna
  • Miniratna CPSEs (itself divided into Category I & Category II)

As on 21 July , 2014 there are 7 Maharatna, 17 Navratna and 72 Miniratna CPSE's.[2]

Eligibility criteria and benefits of financial autonomy[edit]

There are multiple factors and criteria for granting 'ratna' status. Awarding of this status entitles the company boards to perform investments up to a limit (depending on the status) without seeking government permission. Major criteria of awarding status are as follows:

Maharatna Navratna Miniratna Category-I Miniratna Category-II
Eligibility Three years with an average annual net profit of over Rs. 2500 crore (earlier was 5,000 Cr), OR

Average annual Net worth of Rs. 10,000 crore for 3 years (earlier was 15,000 Cr), OR Average annual Turnover of Rs. 20,000 crore for 3 years (earlier was 25,000 Cr)

A score of 60 (out of 100), based on six parameters which include net profit, net worth, total manpower cost, total cost of production, cost of services, PBDIT (Profit Before Depreciation, Interest and Taxes), capital employed, etc., AND

A company must first be a Miniratna and have 4 independent directors on its board before it can be made a Navratna.

Have made profits continuously for the last three years or earned a net profit of Rs. 30 crore or more in one of the three years Have made profits continuously for the last three years and should have a positive net worth.
Benefits for investment Rs. 1,000 crore - Rs. 5,000 crore, or free to decide on investments up to 15% of their net worth in a project up to Rs. 1,000 crore or 15% of their net worth on a single project or 30% of their net worth in the whole year (not exceeding Rs. 1,000 crores). up to Rs. 500 crore or equal to their net worth, whichever is lower. up to Rs. 300 crore or up to 50% of their net worth, whichever is lower.

History of financial autonomy status[edit]

Financial autonomy was initially awarded to 9 PSUs as Navratna status in 1997.[citation needed]

In 2010, the government established the Maharatna status, which raises a company's investment ceiling from Rs. 1,000 crore to Rs. 5,000 crore.[3] The Maharatna firms can now decide on investments of up to 15 per cent of their net worth in a project; the Navaratna companies could invest up to Rs 1,000 crore without explicit government approval.

Historical symbolism[edit]

Originally, the term Navaratna meant a talisman or ornament composed of nine precious gems. Later, this symbology was adopted in the courts of Emperor Vikramaditya and the Mughal emperor Akbar, where the Navaratnas were a group of nine extraordinary men in their respective courts. It is also used to describe a form of architecture.

Examples of Public Sector Undertakings[edit]

Some examples of PSUs include:

List of Maharatna[edit]

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

List of Navratna[edit]

  1. Engineers India Limited
  2. Bharat Electronics Limited
  3. Bharat Petroleum Corporation Limited
  4. Hindustan Aeronautics Limited
  5. Hindustan Petroleum Corporation Limited
  6. Mahanagar Telephone Nigam Limited
  7. National Aluminium Company Limited
  8. National Mineral Development Corporation Limited
  9. Neyveli Lignite Corporation Limited
  10. Oil India Limited
  11. Power Finance Corporation Limited
  12. Container Corporation of India Limited
  13. National Buildings Construction Corporation Limited
  14. Power Grid Corporation of India Limited
  15. Rashtriya Ispat Nigam Limited
  16. Rural Electrification Corporation Limited
  17. Shipping Corporation of India Limited

List of Miniratna-I[edit]

  1. Airports Authority of India
  2. Antrix Corporation
  3. Balmer Lawrie & Co. Limited
  4. Bharat Coking Coal Limited[8]
  5. Bharat Dynamics Limited
  6. BEML Limited
  7. Bharat Sanchar Nigam Limited
  8. Bridge & Roof Company (India) Limited
  9. Central Warehousing Corporation
  10. Central Coalfields Limited
  11. Chennai Petroleum Corporation Limited
  12. Cochin Shipyard Limited
  13. Dredging Corporation of India Limited
  14. Kamarajar Port Limited
  15. Garden Reach Shipbuilders & Engineers Limited
  16. Goa Shipyard Limited
  17. Hindustan Copper Limited
  18. HLL Lifecare Limited
  19. Hindustan Newsprint Limited
  20. Hindustan Paper Corporation Limited
  21. Housing & Urban Development Corporation Limited
  22. India Tourism Development Corporation Limited
  23. Indian Rare Earths Limited
  24. Indian Railway Catering & Tourism Corporation Limited
  25. IRCON International Limited
  26. KIOCL Limited
  27. Mazagaon Dock Limited
  28. Mahanadi Coalfields Limited
  29. Manganese Ore (India) Limited
  30. Mangalore Refinery & Petrochemical Limited
  31. Mishra Dhatu Nigam Limited
  32. MMTC Limited
  33. MSTC Limited
  34. National Fertilizers Limited
  35. National Seeds Corporation Limited
  36. NHPC Limited
  37. Northern Coalfields Limited
  38. North Eastern Electric Power Corporation Limited
  39. Numaligarh Refinery Limited
  40. ONGC Videsh Limited
  41. Pawan Hans Helicopters Limited
  42. Projects & Development India Limited
  43. Railtel Corporation of India Limited
  44. Rail Vikas Nigam Limited
  45. Rashtriya Chemicals & Fertilizers Limited
  46. RITES Limited
  47. SJVN Limited
  48. Security Printing and Minting Corporation of India Limited
  49. South Eastern Coalfields Limited
  50. State Trading Corporation of India Limited
  51. Telecommunications Consultants India Limited
  52. THDC India Limited
  53. Western Coalfields Limited
  54. WAPCOS Limited

List of Miniratna-II[edit]

  1. Bharat Pumps & Compressors Limited
  2. Broadcast Engineering Consultants (I) Limited
  3. Central Mine Planning & Design Institute Limited
  4. Central Railside Warehouse Company Limited
  5. Ed.CIL (India) Limited
  6. Engineering Projects (India) Limited
  7. FCI Aravali Gypsum & Minerals India Limited
  8. Ferro Scrap Nigam Limited
  9. HMT (International) Limited
  10. HSCC (India) Limited
  11. India Trade Promotion Organisation
  12. Indian Medicines & Pharmaceuticals Corporation Limited
  13. M E C O N Limited
  14. Mineral Exploration Corporation Limited
  15. National Film Development Corporation Limited
  16. National Small Industries Corporation Limited
  17. P E C Limited
  18. Rajasthan Electronics & Instruments Limited

See also[edit]

References[edit]

External links[edit]