NAVRATNA

NAVRATNA

Navratna was the title given originally to nine Public Sector Enterprises (PSEs), identified by the Government of India in 1997 as its most prestigious, which allowed them greater autonomy to compete in the global market. The number of PSEs having Navratna status has been raised to 18, the most recent addition being Coal India Limited.

Navratna CPSEs 1. Bharat Electronics Limited (BEL) 2. Bharat Heavy Electricals Limited (BHEL) 3. Bharat Petroleum Corporation Limited (BPCL) 4. Coal India Limited (CIL) 5. Gas Authority Of India Limited (GAIL) 6. Hindustan Aeronautics Limited (HAL) 7. Hindustan Petroleum Corporation Limited (HPCL) 8. Indian Oil Corporation Limited (IOCL) 9. Mahanagar Telephone Nigam Limited (MTNL) 10. National Aluminum Company Limited (NALCO) 11. National Mineral Development Corporation Limited (NMDC) 12. National Thermal Power Corporation Limited (NTPC) 13. Oil & Natural Gas Corporation Limited (ONGC) 14. Power Finance Corporation Limited (PFC) 15. Power Grid Corporation of India Limited (PGCIL) 16. Rural Electrification Corporation Limited (REC) 17. Shipping Corporation of India Limited (SCI) 18. Steel Authority of India Limited (SAIL)

MINIRATNAS

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 Nov 2009, there were 62(48 in category I and 14 in category II) government enterprises that were awarded Miniratna status.

MAHARATNA

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

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

• Three years with an annual net profit of over Rs. 5,000 crore
• Net worth of Rs. 15,000 crore
• Turnover of Rs. 25,000 crore

The only companies currently meeting the criteria are SAIL, ONGC and NTPC.