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 union 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 5 May 2015 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 follow:

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 nine PSUs as Navratna status in 1997.[3]

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.[4] 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.

Category-wise Public Sector Undertakings of India[edit]

Department of Public Enterprises, Govt. of India has awarded autonomy to the following Public Enterprises.[5]

List of Maharatna[edit]

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

List of Navratna[edit]

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

List of Miniratna-I[edit]

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

List of Miniratna-II[edit]

  1. Bharat Pumps & Compressors Ltd.
  2. Broadcast Engineering Consultants India Ltd.
  3. Central Mine Planning & Design Institute Ltd.
  4. Central Railside Warehouse Company Ltd.
  5. Educational Consultants India Ltd.
  6. Engineering Projects (India) Ltd.
  7. FCI Aravali Gypsum and Minerals (India) Ltd.
  8. Ferro Scrap Nigam Ltd.
  9. HMT (International) Ltd.
  10. HSCC (India) Ltd.
  11. Indian Medicines & Pharmaceuticals Corporation Limited
  12. MECON Ltd.
  13. Mineral Exploration Corporation Ltd.
  14. National Film Development Corporation Ltd.
  15. National Small Industries Corporation Ltd.
  16. PEC Ltd.
  17. Rajasthan Electronics & Instruments Ltd.

See also[edit]

References[edit]

External links[edit]