What are Maharatna in India?

In 2009, the government established the Maharatna status, which raises a company’s investment ceiling from Rs. 1,000 crore to Rs. 5,000 crore. The Maharatna firms would now be free to decide on investments up to 15 per cent of their net worth in a project.

Earlier, the Navaratna companies could invest up to Rs 1,000 crore without government approvals.

Criteria for Maharatna

In order to qualify as a Maharatna, a company must have:

• Three years with an annual net profit of over Rs.2500 crore
• Net worth of Rs. 10,000 crore
• Turnover of Rs. 20,000 crore

What are Navratna in India?

The Navratna status is offered to PSEs, which gives a company enhanced financial and operational autonomy and empowers it to invest up to Rs. 1000 crore or 15% of their net worth on a single project without seeking government approval. In a year, these companies can spend up to 30% of their net worth not exceeding Rs. 1000 cr. They will also have the freedom to enter joint ventures, form alliances and float subsidiaries abroad.

Criteria for Navratna 

Navratna status is conferred by Department of Public Enterprises. To be qualified as a Navratna, the company must obtain a score of 60 (out of 100). The score is based on six parameters which include net profit to net worth, total manpower cost to total cost of production or cost of services, PBDIT (Profit Before Depreciation, Interest and Taxes) to capital employed, PBDIT to turnover, EPS (Earning Per Share) and inter-sectoral performance. Additionally, a company must first be a Miniratna and have four independent directors on its board before it can be made a Navratna.

What are Miniratnas in India?

In addition, the government created another category called Miniratna. Miniratnas can also enter into joint ventures, set subsidiary companies and overseas offices but with certain conditions. In 2002, there were 41 government enterprises that were awarded Miniratna status.

Category I

This designation applies to PSEs that 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. These miniratnas granted certain autonomy like incurring capital expenditure without government approval up to Rs. 500 crore or equal to their net worth, whichever is lower.

Category II

This category include those PSEs which have made profits for the last three years continuously and should have a positive net worth. Category II miniratnas have autonomy to incurring the capital expenditure without government approval up to Rs. 300 crore or up to 50% of their net worth whichever is lower.

List of Maharatna, Navratna and Miniratna CPSEs

As per available information

(as on 15th April, 2011)

Maharatna CPSEs

1. Coal India Limited
2. Indian Oil Corporation Limited
3. NTPC Limited
4. Oil & Natural Gas Corporation Limited
5. Steel Authority of India Limited

Navratna CPSEs

1. Bharat Electronics Limited
2. Bharat Heavy Electrical Limited
3. Bharat Petroleum Corporation Limited
4. GAIL (India) Limited
5. Hindustan Aeronautics Limited
6. Hindustan Petroleum Corporation Limited
7. Mahanagar Telephone Nigam Limited
8. National Aluminium Company Limited
9. NMDC Limited
10. Neyveli Lignite Corporation Limited
11. Oil India Limited
12. Power Finance Corporation Limited
13. Power Grid Corporation of India Limited
14. Rashtriya Ispat Nigam Limited
15. Rural Electrification Corporation Limited
16. Shipping Corporation of India Limited

Miniratna Category – I CPSEs

1. Airports Authority of India
2. Balmer Lawrie & Co. Limited
3. Bharat Dynamics Limited
4. BEML Limited
5. Bharat Sanchar Nigam Limited
6. Bridge & Roof Company (India) Limited
7. Central Warehousing Corporation
8. Central Coalfields Limited
9. Chennai Petroleum Corporation Limited
10. Cochin Shipyard Limited
11. Container Corporation of India Limited
12. Dredging Corporation of India Limited
13. Engineers India Limited
14. Ennore 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 Railway Catering & Tourism Corporation Limited
24. IRCON International Limited
25. KIOCL Limited
26. Mazagaon Dock Limited
27. Mahanadi Coalfields Limited
28. Manganese Ore (India) Limited
29. Mangalore Refinery & Petrochemical Limited
30. Mishra Dhatu Nigam Limited
31. MMTC Limited
32. MSTC Limited
33. National Fertilizers Limited
34. National Seeds Corporation Limited
35. NHPC Limited
36. Northern Coalfields Limited
37. Numaligarh Refinery Limited
38. Pawan Hans Helicopters Limited
39. Rashtriya Chemicals & Fertilizers Limited
40. RITES Limited
41. SJVN Limited
42. Security Printing and Minting Corporation of India Limited
43. South Eastern Coalfields Limited
44. State Trading Corporation of India Limited
45. Telecommunications Consultants India Limited
46. THDC India Limited
47. Western Coalfields Limited
48. WAPCOS Limited

Miniratna Category-II CPSEs

49.Bharat Pumps & Compressors Limited

50. Broadcast Engineering Consultants (I) Limited

51. Central Mine Planning & Design Institute Limited

52.   Ed.CIL (India) Limited

53.  Engineering Projects (India) Limited

54.  Ferro Scrap Nigam Limited

55. HMT (International) Limited

56. HSCC (India) Limited

57.  India Trade Promotion Organisation

58.  Indian Medicines & Pharmaceuticals Corporation Limited

59. M E C O N Limited

60. National Film Development Corporation Limited

61.  National Small Industries Corporation Limited

62.  P E C Limited

63.   Rajasthan Electronics & Instruments Limited

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