How does govt award Maharatna, Navratna status to PSUs?

The government has divided all the Public Sector Undertakings (PSUs) mainly in three categories namely Maharatna, Navratna and Miniratna

Published on:

04 Dec 2019, 10:30 am

New Delhi: The government has divided all Public Sector Undertakings (PSUs) mainly in three categories, namely Maharatna, Navratna and Miniratna, according to their performance and other criteria. The criteria of evaluation laid down by the government for granting 'Ratna' status to Public Sector Undertakings (PSUs) are given below: Criteria for grant of 'Maharatna' status to CPSEs To get the Maharatna status, the organisation (PSU) must full-fill the following criteria:

The company should have 'Navratna' status.
The company should be listed on Indian stock exchange with minimum prescribed public shareholding under Securities and Exchange Board of India (SEBI) regulations.
The company should have an average annual turnover of more than Rs 25,000 crore during the last 3 years.
The average annual net worth of the company should be more than Rs 15,000 crore during the last 3 years.
The average annual net profit after tax (PAT) should be more than Rs 5,000 crore during the last 3 years.
The company (PSU) should have a significant global presence or international operations.

Currently, there are 10 Maharatna PSUs

Bharat Heavy Electricals Limited (BHEL)
Bharat Petroleum Corporation Limited (BPCL)
Coal India Limited (CIL)
GAIL (India) Limited (GAIL)
Hindustan Petroleum Corporation Limited (HPCL)
Indian Oil Corporation Limited (IOCL)
NTPC Limited
Oil & Natural Gas Corporation Limited (ONGC)
Power Grid Corporation of India Limited (PGCIL)
Steel Authority of India Limited (SAIL)

Criteria for grant of Navratna status to PSUs To get Navratna status, the company (PSU) must full-fill the following criteria:

The company should have Miniratna-I, Schedule 'A' status.
The PSU should have obtained 'excellent' or 'very good' MoU rating in three of the last five years.
The PSU must have a composite score of 60 in the following six selected performance indicators given below:

Performance Indicators	Maximum Weight 100
Net Profit to Net worth	25
Manpower Cost to total Cost of Production or Cost of Services	15
PBDIT to Capital employed	15
PBIT to Turnover	15
Earning Per Share	10
Inter Sectorial Performance	20

List of 'Navratna' PSUs

Bharat Electronics Limited (BEL)
Container Corporation of India Limited (CONCOR)
Engineers India Limited (EIL)
Hindustan Aeronautics Limited (HAL)
Mahanagar Telephone Nigam Limited (MTNL)
National Aluminium Company Limited (NALCO)
NBCC (India) Limited (NBCC)
NMDC Limited
NLC India Limited
Oil India Limited (OIL)
Power Finance Corporation Limited (PFC)
Rashtriya Ispat Nigam Limited (RINL)
Rural Electrification Corporation Limited (REC)
Shipping Corporation of India Limited (SCI)

Criteria for grant of Miniratna status to CPSEs Miniratna Category-I status: – PSUs which have made a profit in the last three years continuously, pre-tax profit is Rs 30 crore or more in at least one of the three years and have a positive net worth are eligible to be considered for grant of Miniratna-I status. Miniratna Category-II status: – PSUs which have made a profit for the last three years continuously and have a positive net worth are eligible to be considered for grant of Miniratna-II status.

Miniratna PSUs should have not defaulted in the repayment of loans/interest payment on any loans due to the government.
Miniratna PSUs shall not depend upon budgetary support or government guarantees.

Miniratna Category – I CPSEs