Maha Navratna PSUs
|This article is an orphan, as no other articles link to it. Please introduce links to this page from ; try the Find link tool for suggestions. (April 2010)|
||It has been suggested that this article be merged into List of public sector undertakings in India. (Discuss) Proposed since December 2013.|
Maharatna PSUs are the biggest Public Sector Undertakings (PSU)'s of India. Presently (BHEL, ONGC, IOCL, NTPC, CIL, GAIL and SAIL).These seven are the officially declared Maharatna Companies.On 21.05.2010, Indian Oil, ONGC, SAIL and NTPC have been declared as Maha navratnas. But only NTPC will be able to exercise the authority since the other companies are not having the requisite nos. of independent Directors in their Boards.
established the Maharatna status, 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 per cent of their net worth in a project; the Navaratna companies could invest up to Rs 1,000 crore without explicit government approval.34535+5+8+985
Current Financial Autonomy Status
There are currently 7 Maharatnas, 17 Navratnas and 54 Miniratnas-I and 18 Miniratna-II.
There are multiple factors and criteria for granting 'ratna' status. However, major criteria of awarding status are:
- Three years with an annual net profit of over Rs. 5000 crore
- Average annual Net worth of Rs. 15,000 crore for 3 years
- Average annual Turnover of Rs. 25,000 crore for 3 years
- 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.
- A company must first be a Miniratna and have 4 independent directors on its board before it can be made a Navratna.
- Miniratna Category-I
- 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.
- Miniratna Category-II
- Have made profits for the last three years continuously and should have a positive net worth.
The Categorisation entitles the company boards to do investments up to a limit (depending on the status) without seeking government permission.
- Maharatna: up to Rs.1,000 crore - Rs. 5,000 crore, or free to decide on investments up to 15% of their net worth in a project.
- Navratna: 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).
- Miniratna-I: up to Rs. 500 crore or equal to their net worth, whichever is lower.
- Miniratna-II: up to Rs. 300 crore or up to 50% of their net worth, whichever is lower.
Companies like HPCL,BPCL,HAL,etc. have demanded the maharatna status from govt.
- "Maharatna status for mega PSUs gets nod". The Times of India. 25 December 2009. Retrieved 29 December 2009.